Metsä Group’s tissue and cooking paper business invests in bioenergy in Sweden

Metsä Group Press Release 4 April 2013
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Metsä Group Press Release 4 April 2013

Katrinefors Kraftvärme AB (KKAB), a 50/50 joint venture owned by Metsä Tissue, part of Metsä Group, and the local municipal energy company VänerEnergi AB, will build a new biomass combined heat and power (CHP) plant in Mariestad, Sweden, in conjunction with the Metsä Tissue mill. This will be the second bioenergy plant operated by KKAB.

The construction of the new plant will start in April 2013. The plant is expected to be operating by the end of 2014. The total investment will amount to approximately 30 million euros of which Metsä Tissue’s share will be 50 per cent.

According to Mark Watkins, SVP Tissue Scandinavia, KKAB’s new bioenergy plant is an important step in increasing the share of bioenergy. In Metsä Group, the share of wood-based bioenergy is high, as over 80 per cent of all the used fuel is biomass.

Increasing the share of bioenergy is one of the key activities in Metsä Group’s efforts to mitigate climate change and reduce fossil CO2 emissions. Metsä Group’s target is to reduce fossil-based CO2 emissions by 30 per cent per product tonne by 2020 from the 2009 level.

The new bioenergy production reduces significantly, even as much as 90 per cent, Metsä Tissue Mariestad mill’s oil usage. The new power plant will decrease Mariestad mill’s CO2 emissions by approximately 6,000 tonnes, i.e. by 30 per cent from the present. Currently oil is used to cover wintertime peak in heat demand and as reserve fuel.

The new biomass CHP plant will be composed of an approximately 28 MW biomass boiler to produce heat and approximately 7 MW turbine to produce electricity. The biomass fuels consist of energy wood and the mill’s recycled fibre residues.

In addition to producing electricity and heat to Mariestad mill, the plant will provide renewable energy for the surrounding community in the form of district heating and bio-based grid electricity.

Group Communications

For further information, please contact:
Mark Watkins, SVP Tissue Scandinavia, Metsä Tissue, tel. + 46 50 127 5012
Ilkka Latvala, SVP Energy, Metsä Group, tel. +358 50 381 9353

Metsä Group is a responsible forest industry group whose products are part of people’s everyday life and promote sustainable well-being. Metsä Group produces high-quality products mainly from renewable Nordic wood. The Group’s business areas are tissue and cooking papers, board and paper, pulp, wood products as well as wood supply. Metsä Group’s sales totalled EUR 5.0 billion in 2012, and it employs approximately 11,500 people. The Group is present in some 30 countries.

With its high-quality tissue and cooking papers, Metsä Tissue makes life more comfortable for consumers, customers and end-users every day. Metsä Tissue is a leading tissue paper products supplier to households and industrial consumers in Europe. We are also the world’s leading supplier of baking and cooking papers. Our main brands are Lambi, Serla, Mola, Tento, Katrin and SAGA. With production units in six countries, we employ a total of about 3,300 people. Our turnover in 2012 was EUR 1,0 billion euros. Metsä Tissue is part of Metsä Group.