Katrinefors Kraftvärme (KKAB) is to build a new biomass combined heat and power (CHP) plant in Mariestad, Sweden, in conjunction with the Metsä Tissue mill.
KKAB, a 50/50 joint venture owned by Metsä Tissue and local energy company VänerEnergi AB, said construction will start this month and is expected to be operating by the end of 2014.
The total investment will amount to approximately euro 30 million of which Metsä Tissue’s share will be 50 per cent.
Mark Watkins, SVP Tissue Scandinavia, said 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% of all used fuel is biomass.
Its target is to reduce fossil-based CO2 emissions by 30% per product tonne by 2020 from the 2009 level. 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.