Metsä Board estimated that the final investment decision on the first phase of the renewal of its Husum pulp mill in Sweden can be made in the 2Q 2020, at the earliest.
The company aims to minimize the delay in the start-up of the new recovery boiler and turbine due to the environmental permit process. This is to enable the introduction of new cleaner and more energy efficient technology as quickly as possible, and to minimize the production interruption risk related to the old recovery boilers.
To reduce the delay, the company has selected the main equipment suppliers and will make certain financial commitments for the implementation phase of the project already at the end of 2019 and early 2020, although no final investment decision will be made prior to receiving the environmental permit.
The total value of the commitments will be a maximum of Euro 100 million. The total value of the investment is estimated at approximately Euro 320 million. The amount includes financial commitments made prior to the investment decision.
The new recovery boiler and turbine are expected to increase the Husum pulp mill's electricity generation by about 330 gigawatt-hours per year, resulting in cost savings at current electricity prices of approximately Euro 12 million per year.
Source: Lesprom Network