Norske to build biogas plant at its mill
Norske Skog is planning to build a biogas plant at the site of one of its mills in Norway, which will use bio-waste from the paper production process as feedstock.
The company will invest NOK150 million (€17 million) in the project.
'We are planning to commercialise 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,' says Sven Ombudstvedt, president and CEO of Norske Skog and chairman of the board of Norske Skog Saugbrugs. 'Our new growth area will be a new main business leg named Nature's Flame.'
Enova has granted NOK52 million to the project, while Sparebank 1 Gruppen and Halden Municipality's pension fund has provided about NOK100 million in debt financing.
Norske Skog says it could also consider 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,' Ombudstvedt continues.
AGA, which supplies biogas to heavy vehicles, will purchase the majority of the biogas from Saugbrugs. 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 tonnes annually.