The sale includes three power stations (with an aggregate capacity of 21 megawatts), water rights, and an equity stake in the Chaudière Water Power Inc. ring dam consortium.
The dozen Ottawa-based employees with Domtar in hydro assets will become workers of a subsidiary of Energy Ottawa, which itself is the renewable energy subsidiary of Hydro Ottawa.
Domtar expects the transaction will close Aug 31. It is subject to closing conditions and approvals from third parties, who were not named in a press release.
The company also has a presence on Chaudiere Island. Most of the area is up for sale after the company closed a mill there in 2007.
When contacted by OBJ Wednesday, spokesperson Stewart Lister said the firm is still looking for "a willing and suitable buyer" but has nothing to report at this time.
The Montreal-based firm is a designer, manufacturer and distributor of fibre-based products that include specialty papers and communication papers.
Domtar says it had US$5.6 billion of sales in 2011, and currently employs about 9,100 people.