Stora Enso biomaterials division’s Enocell Pulp Mill’s power plant will be transferred from Fortum Power and Heat Oy to Stora Enso at approximately €16 million ($21.9 million) in accordance with an existing finance lease agreement.
Stora Enso has approximately €16 million short term finance lease liability specific to this transaction in the September 2013 balance sheet.
The division will also invest approximately €13.5 million to increase use of renewable energy at the mill.
Stora Enso has planned to take ownership of the power plant at the mill site on December 31, 2013.
In 1990, Fortum Power and Heat Oy (then called Imatran Voima Oy) bought the old power plant at the mill site and built a new power plant there as part of a mill expansion project.
The new power plant comprises a 100MW solid fuel bubbling bed boiler and a 99MW turbogenerator.
The power plant uses bark from the pulp mill and residues from forestry operations as fuel.
Its annual power production capacity is approximately 600GWh, of which about 400GWh is used by Stora Enso’s operations at the mill site.
The day-to-day operations and maintenance of the plant are already undertaken by employees of Stora Enso and the mill maintenance company Efora Oy, so no personnel will be transferred in the change of ownership.
Investment to reduce carbon dioxide emissions, energy costs
The investment in renewable energy will enable about 85% of the fuel oil used in its lime kiln to be replaced by sawdust.
The investment is expected to reduce the mill’s annual fossil-based carbon dioxide emissions by 30 000 tons and energy costs by €5 million.
The changes required to the mill processes will be made during 2014.
