Metsä Board mulls EUR 300 million recovery boiler investment in Sweden
In Sweden, Metsä Board, part of Finnish forest industry major Metsä Group has announced that it has begun the pre-engineering phase for a new recovery boiler at its Husum integrated pulp and board mill. By replacing two existing recovery boilers and turbines with a single unit, the mill could increase productivity, reduce energy costs and double power self-sufficiency to over 80 percent. An investment decision in the EUR 300 million project is expected in late 2019.
According to a statement April 26, Metsä Board has carried out a pre-feasibility study on renewing the Husum pulp mill in phases. In the first phase, the existing two old recovery boilers would be replaced with one new recovery boiler, and the old turbines replaced with one new turbine.
Metsä Board will now launch a pre-engineering phase for the investment in a single recovery boiler, which includes, among other things, the necessary regulatory processes, the technical design and a competitive tender for the main equipment. The timing of the final investment decision depends on the duration of the regulatory processes.
Increase productivity and electricity self-sufficiency
The capacity of the planned recovery boiler would correspond to an annual production of up to 750,000 tonnes of pulp, in accordance with the current environmental permit. If realized, the size of the investment would be approximately EUR 300 million, divided between years 2019-2022. The recovery boiler would be in operation roughly two years after the final investment decision.
The planned investment in the recovery boiler will reduce the energy costs of the mill, improve the reliability of production and decrease the duration of the annual maintenance shutdown. Own electricity generation, entirely based on renewable biomass, will double and increase the self-sufficiency in electricity of the integrate to over 80 percent.
In addition, the use of fossil oil in the integrate will reduce by approximately 5 000 tonnes per year.
A second centennial for Husum?
Celebrating a century since its founding in 1919, Metsä Board Husum integrated board and pulp mill has a current production capacity of 400 000 tonnes-per-annum (tpa) folding boxboard, 250 000 tpa white kraftliner and 730 000 tpa bleached kraft pulp.
The investment in the recovery boiler would enable the long-term development of the Husum integrated mill. In the second phase, during the 2020’s, the existing two fibre lines of the mill would be replaced by one new. During that period, potential investments to increase paperboard capacity can be based on a cost-efficient long-term energy production solution.
The investment decision is expected to be made in the fourth quarter of 2019, at the earliest. Also on April 26, 2019, Metsä Fibre announced that it has begun pre-engineering projects in Finland related to building a new bioproduct mill in Kemi and a new sawmill in Rauma.
If implemented in full, the total value of the investments would amount to approximately EUR 1.7 billion during 2020–2023. Final investment decisions for the Kemi and Rauma projects are expected to be made in 2020.