Metso announces Russian CHP project, releases 2012 financials

By Erin Voegele | February 13, 2013

On Feb. 12, Finland-based Metso has announced it will supply a biomass-fired combined-heat-and-power (CHP) plant to Bioenergeticheskaya Kompaniya LLC. The facility will be located in Syktyvkar, the Komi Republic, Russia. According to Metso, the 4 MW plant is scheduled to be operational in 2014.

Information released by Metso states that the order will include process equipment and technical advisory services for installation, commissioning and training. A Metso belt dryer and Metso DNA automation system will be included in the delivery. The value of the order has not been disclosed.

The CHP plant will take in wood residues from the Syktyvkar sawmill along with other sources of biomass as feedstock. Power produced at the facility will be fed to the local grid, with heat utilized in the belt dryer.

“We are convinced that cooperation with Metso will provide a means to utilize the sawmill residues from the Syktyvkar sawmill to produce power,” said Alexander Gibezh, deputy minister of industry and transport of the Republic of Komi.

“Sawmill residues that have long been stored at the site of the Syktyvkar sawmill will now be used as fuel for the new power plant. The investment in the power plant will help to create more job opportunities and will improve the environmental situation in the Komi Republic,” added Alexey Kryukov, CEO of Bioenergeticheskaya Kompaniya.

In early February, Metso released its financial results for 2012. According to the company’s financial statement, it received nearly EUR 6.87 billion ($9.13 billion) in new orders during 2012 throughout all its business segments. Net sales increased by 13 percent when compared to 2011, to EUR 7.5 billion.

During a call to discuss the results, Matti Kahkonen, Metso president and CEO, spoke briefly about Meto’s power business, noting that half of the company’s power business goes to pulp recovery boilers and half to biomass boilers. There has been some uncertainty and delays in the big power projects, he said, noting that some projects expected in 2012 have been delayed to early 2013.

According to Metso’s financial report, its pulp, paper and power segment posted EUR 2.44 billion in orders overall during 2012, including EUR 1.11 billion in services business and EUR 1.32 billion in equipment, product and project business. The value of orders in the pulp, paper and power segment dropped by 24 percent overall compared to 2011, with services down by 3 percent and equipment, product and project business orders down by 36 percent. However net sales for the pulp, paper and power segment were up 12 percent compared to 2011, reaching EUR 3.01 billion.