The investment will include a new lime kiln and a new pelleting plant.
On 30 May, the Board of Directors at Södra Cell made the decision to implement two energy investments at Södra Cell Värö. These will include a new lime kiln and a new pelleting plant.
"These investments will allow us to further improve energy efficiency at Värö, while at the same time creating profitable processing of our members' wood," said Gunilla Saltin, Acting CEO of the Södra Group and President of Södra Cell.
A new lime kiln will help reduce the consumption of oil and bark, using biofuel in the form of wood powder instead. The lime kiln will allow lime to be reused in pulp production. The existing lime kiln at Södra Cell Värö does not have sufficient capacity to manage sustainably the lime production needed at the mill.
This project also includes construction of a completely new pelleting plant which will supply biofuel to both external customers and the new lime kiln. The raw material for the pelleting plant will come from Södra Timber's sawmill in Värö. Raising production at the new sawmill will also increase volumes of sawdust and planer shavings. The investment will allow these byproducts to be turned into a biofuel with a high energy content which is suitable for sale, but can also be used as a fuel in the new lime kiln. The two investments decided upon form part of the efforts to take advantage of the benefits of scale available at Värö.
"At Värö, we have access to raw materials in the form of shavings and the energy to dry the shavings to form pellets. This means that everything is in place to provide cost-effective production of a highly processed biofuel," Saltin added.
It is estimated that the new lime kiln and pelleting plant will be commissioned in late 2013.