Norske Skog: New growth opportunity in bioenergy
(Thomson Reuters ONE) -
Norske Skog plans to build biogas facilities at its mills, utilizing bio-waste
from the paper production to renewable energy.
Norske Skog Saugbrugs will invest NOK 150 million in construction of a biogas
facility in connection to its effluent plant. The biogas facility will
contribute to gross operating earnings in 2016 and be at full run-rate
contribution in 2017.
- We are planning to commercialize bio-waste from raw material into gas at our
mills. Despite challenging markets, we believe that our mill sites are
sustainable, and will strengthen their competitiveness by constructing biogas
facilities. Our new growth area will be a new main business leg named Nature's
Flame, says Sven Ombudstvedt, President and CEO of Norske Skog and chairman of
the board of Norske Skog Saugbrugs.
Enova has granted NOK 52 million in support to the project, while Sparebank 1
Gruppen and Halden Municipality's pension fund has provided about NOK 100
million in debt financing. Norske Skog plans to build biogas facilities at its
mills, utilizing biowaste from the paper production process to renewable energy.
Norske Skog is currently considering replicating the project at its other mills.
- An onsite biogas facility brings twofold economic benefits; a new biogas
revenue stream and reduced paper production costs. Biogas is further a renewable
alternative to fossil fuels, which forms part of the carbon solution. Moreover,
biogas has large potentials in improving urban air quality, says Sven
Ombudstvedt, President and CEO of Norske Skog.
AGA will be the main purchaser of biogas from Saugbrugs. AGA has been supplying
biogas to heavy vehicles since 2008. AGA supplies 550 buses and trucks with
biogas from filling stations every day.
- The agreement with Norske Skog Saugbrugs represents a positive addition for
renewable fuels in the county of Østfold, Norway. The volume of biogas covered
by the agreement will be able to supply biogas to a fleet of 70 heavy vehicles
and a reduction in CO2 emissions of about 6,500 tons annually, says John Melby,
Manager Clean Energy at AGA AS.
The investment in the biogas business will strengthen the entire mill site's
competitiveness and be part of Norske Skog's efforts to improve operations at
its remaining mill sites.
- Bioenergy can play an important role in the transition to a more environmental
friendly transport sector, and availability of bioenergy must be increased.
Therefore, we find it great that Norske Skog Saugbrugs will utilize sewage
sludge from paper production to produce biogas. Buses and refuse trucks in
Østfold will now be able to use climate-friendly biogas made from waste products
from Norske Skog. We wish to see more of this type of energy utilization.
Hopefully, several other mills in the Norske Skog group will adopt similar
solutions, says marketing director Audhild Kvam in Enova.
Norske Skog Saugbrugs has 500 employees. The mill has an annual production
capacity of 500 000 tonnes of magazine paper.
Oslo, 16 July 2015
Norske Skog Enova
Communications and Public Affairs Communication department
For further information:
Norske Skog media: For Enova:
Vice President corporate communication Senior communication advisor
Carsten Dybevig Espen Sletvold
Mob: +47 917 63 117 Mob: +47 971 28 188
Twitter: (at)Norske_Skog
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Source: Norske Skog via GlobeNewswire
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Datum: 16.07.2015 - 10:00 Uhr
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