Sweden's Vida Paper partners with Lessebo Municipality to invest up to SEK80M in several stages on bioenergy technology to supply local community

Mathew Kearney

Mathew Kearney

Mar 30, 2010 – VIDA Paper AB

LESSEBO, Sweden , March 30, 2010 (press release) – VIDA Paper AB and Lessebo Municipality in joint venture focused on distributing bio-energy for the local community.

VIDA Paper AB and Lessebo Municipality has signed a deal regarding distribution of heat to the Lessebo community. Lessebo Municipality will successively invest in the distribution network. In the first stage, investments will be made to secure distribution of 50% of the total projected volume, with start from autumn 2010. The distribution network is projected to reach its full expanse in the beginning of 2013. For this first stage, VIDA Paper AB will invest in; heat exchanger, accumulation tanks and other support techniques at a value of approximately SEK15-20 million.

In Stage two, when the network will reach its fullest expanse, further investments are needed to be able to cover the demand from the community. VIDA Paper AB will then have to increase its heat producing capacities by investing in a new bio-fuel heater, either based on hot water or steam. The total worth of such an investment would be between SEK25-40 million. A choice of a steam based technique, would also enable VIDA Paper AB to complement the heat production with production and distribution of electricity of up to 27 million GWH .

If the whole project is realized it would mean a total investment of approximately SEK 80 million for VIDA Paper AB.

The objective of whole project is to increase availability of environmentally friendly energy; heat and electricity, both locally and on the open Nordic market.

-This is another step in line with the strategy of joint paper and energy production, that was the basis for the purchase of Lessebo Mill and this will secure the future of VIDA Paper AB further, says VIDA group’s CEO Santhe Dahl.

-I see this as something very positive and progressive to be able to make such a strategic important investment in the future as this is. This is good news both for VIDA Paper AB and for future generations, says VIDA Paper’s MD Jan Fjeldså.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.