GERMANY -- UPM says it has entered into a conditional agreement with Blue Energy Europe (BEE) for the supply of heat for its Hürth mill in the Cologne area in Germany. The deal is expected to be finalised during the first half of 2017 at the latest.

As part of the deal BEE will acquire a biomass boiler, turbine and generator from UPM's closed Myllykoski site in Finland. BEE will transfer the power plant components to the vicinity of UPM's Hürth mill, and provide steam for the mill.

"This opportunity is both economically and environmentally attractive. BEE's heat supply will be biomass-based and thus, its fossil CO2 emissions are zero. Additionally, it will decrease the energy costs of the Hürth mill," says Anu Ahola, Senior Vice President, Newspaper Publishing, UPM Paper ENA.

UPM continually looks to reduce its carbon footprint through the use of renewable energy. "Also, a reuse of the existing renewable energy plant is a good example of our corporate responsibility," adds Anu Ahola.

UPM has been actively seeking alternatives for use of the Myllykoski site and its equipment after closing the mill in 2011.

UPM Hürth paper mill is located in the outskirts of Cologne, in Western Germany. Since 2002 the mill has produced high quality paper for newspapers and advertising supplements from recovered paper.