Hamilton, Ohio-based Smart Papers announced today that it plans to run its paper mill on 100 percent renewable energy, breaking ground on a co-generation biomass facility at its manufacturing center in Hamilton.

The sustainable paper maker said the new $30 million power plant is expected to be complete by spring 2009.

"The production of these papers will leave the lightest environmental footprint of any premium coated or uncoated printing paper produced in North America," said Tim Needham, chairman of Smart Papers.

The company said the 40 megawatt co-generation system, which will generate electricity and steam to operate the mill, consists of four turbines, two condensers, a cooling tower and auxiliary equipment from Morris Township, N.J.-based Honeywell International (NYSE: HON).

Smart Papers said the biomass fuel would be primarily yard waste as well as industrial wood and fiber waste.

"We see our approach as the smart choice," said Dan Maheu, president and COO of Smart Papers.

"We will be a more efficient manufacturer, fiscally and environmentally responsible, and energy independent.  This will benefit our business, our customers, our employees and the environment."

By late 2010, Smart Papers said it expects to also start supplying renewable energy from the new plant to the grid.

The company said its manufacturing center is a zero process waste discharge facility, where all products are process chlorine free, elemental chlorine free and acid free.

Smart Papers said all of its pulp is certified as sustainable by third-party organizations, including the Forest Stewardship Council, the Sustainable Forestry Initiative, the Programme for the Endorsement of Forest Certification, and the Canadian Standards Association.