energy

Norske Skog plans to build biogas facilities

Norske Skog plans to build biogas facilities

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.

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