Metsa Group invests in CHP bioenergy in Sweden
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 percent.
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 percent 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 percent per product metric ton 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 metric tons, i.e. by 30 percent 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 fiber 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.