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Wed, Jul 6, 2022 03:01
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Management Side
Norske Skog JV Ready to Start Construction of Biomass Boiler at French Mill

FRANCE (News release) -- Norske Skog ASA said Tuesday that its Green Valley Energie joint venture is ready to begin construction of a biomass boiler at the mill site in Golbey, France, following completion of debt financing.

The Norwegian pulp-and-paper company said the GVE is a biomass energy plant that will produce electricity and heat from waste and residue materials, with the electricity sold through a feed-in tariff contract and the steam used for Norske Skog's Golbey mill.

"This energy project is one more milestone in the on-going transition of Norske Skog towards new growth markets and sustainable energy," Norske Skog Chief Executive Sven Ombudstvedt said.

The GVE biomass boiler will be commissioned in September 2024 and will produce over 200 gigawatt hours of electricity and over 700 gigawatt hours of renewable heat, generating carbon dioxide savings of 210,000 tonnes per year and providing electricity equivalent to the consumption of more than 13,000 homes, the company said.

"The biomass boiler will ensure a stable, long-term supply of cost-competitive and 100% renewable steam as an alternative to fossil energy sources like natural gas, shielding us from increasingly volatile energy markets," Mr. Ombudstvedt added.

The boiler will use 230,000 tonnes of recycled wood and 20,000 tonnes of residues from the industrial process of Norske Skog Golbey annually, the company noted.

Pearl Infrastructure Capital is the majority shareholder of GVE, holding an 80% share, while Norske Skog and Veolia Environnement SA hold 10% each.

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