Domtar employee-led projects save 2.3 billion gallons of water a year
Employee-led conservation projects at ten Domtar mills have reduced the company’s water use by more than 2.3 billion gallons per year since 2023, supporting the group’s objective of cutting water-use intensity by 20% by 2030 compared with 2020 levels. The results come from Domtar’s Water Reduction Capex Fund, a programme that allocates a dedicated portion of capital spending exclusively to water-conservation projects proposed by mill teams.
Since the programme began, 24 projects have been completed across ten Domtar mills. According to the company, the annual water savings achieved through these initiatives are equivalent to the volume of approximately 3,480 Olympic-sized swimming pools.
A fund dedicated exclusively to water reduction
The Water Reduction Capex Fund operates as an internal competition. Mill teams submit project proposals and compete for access to the available capital. One of the defining characteristics of the programme is that projects are not required to deliver a financial return.
“The projects didn’t need to provide a financial return. The priority was saving water,” said Brian Kozlowski, senior director of environment and sustainability for Domtar’s Paper and Packaging business unit. “That gave our employees the chance to think beyond the bottom line — and they really did.” The approach has allowed operators, engineers and maintenance teams to identify opportunities to reduce water consumption directly within mill processes. Many of the projects focus on reusing water that would otherwise be replaced with fresh water.
In papermaking, for example, water drained from the forming sheet contains suspended fibres and is commonly referred to as white water. By capturing and reusing this water, mills can reduce the amount of fresh water required in the process. Other projects involve cooling water. Instead of using water once and discharging it, mill teams have redirected it to cooling towers so that heat can be removed and the water recirculated.
Additional initiatives have focused on reducing demand at source
Industrial pumps often require a continuous flow of seal water to keep moving components cool and properly sealed. While each flow may appear limited, continuous operation across hundreds of pumps can result in substantial overall consumption. Replacing traditional pump packing with modern mechanical seals can reduce this requirement significantly. Flow regulators can also limit water use to the amount actually required by the equipment. Similarly, converting open-loop cooling systems into closed-loop systems allows the same water to be recirculated repeatedly, potentially eliminating the need for continuous fresh-water intake for these applications.
During the first year of the programme, Domtar approved ten projects at seven mills, which together generated annual savings of more than 1 billion gallons of water. The initiative has since expanded to 24 completed projects at ten mills. The internal competition between mills has also encouraged further innovation. In spring 2026, Domtar’s Nekoosa Mill in Wisconsin received the company’s internal Water Reduction Award for a series of conservation initiatives expected to save more than 129 million gallons of water.
The impact of the programme is also reflected in Domtar’s sustainability indicators. According to the company’s Q2 2026 Sustainability Strategy update, the Water Reduction Capex Fund has now completed its third year of projects. Through the first quarter of 2026, water use across Domtar’s Paper & Packaging business unit was 10% lower than in 2020, representing half of the company’s 2030 reduction target.
Water resilience in pulp and paper production
Water remains an essential resource in pulp and paper manufacturing, where it is used in several stages of the production process, including pulp washing and transport, steam generation and equipment cooling.
Domtar states that its mills seek to reuse water as much as possible internally. Approximately 94% of the water withdrawn by a mill is treated and returned to the environment. The remaining portion leaves the process mainly through evaporation or in the finished product. The company also links water conservation to broader questions of resilience and climate risk.
Domtar’s Plymouth Mill in eastern North Carolina provides one example. The mill draws fresh water from the Roanoke River near the coast. The river’s flow helps prevent salt water from the Albemarle Sound from moving upstream. During drought conditions in 2022 and 2023, river levels fell sufficiently for the saltwater front, known as the saltwater wedge, to move to within approximately a quarter of a mile of the mill’s water intake. Salt water cannot be used in pulp and paper production, making freshwater availability a critical operational issue.
Reducing water withdrawals therefore helps leave more fresh water in the river, strengthening the natural barrier against saltwater intrusion and supporting other users who depend on the same water source. Domtar considers this type of water resilience one of the four environmental commitments included in its 2030 Sustainability Strategy, alongside responsible sourcing, protection of critical habitats and reductions in greenhouse gas emissions. The Water Reduction Capex Fund was launched in 2023 and received the American Forest & Paper Association’s Leadership in Sustainability – Water Management Award in 2024. The programme is designed to continue supporting mill-led projects that reduce water demand while improving the long-term resilience of Domtar’s pulp, paper and packaging operations.
