May 6, 2021 - KaiCell Fibers announced that a letter of intent has been signed by KaiCell Fibers and Loiste Oy, a Finnish power service group, which sets the framework for developing optimal energy related synergies between KaiCell Fibers' planned 600,000 tonnes per year (tpy) pulp and bioproducts mill in Paltamo (northeastern Finland) and the Loiste companies.
The parties anticipate that conditions for a decision to proceed with the Paltamo mill will be in place towards the end of 2022, and they wish to ensure that a solid energy cooperation concept is defined and agreed by then.
KaiCell Fibers said, "The fact that the mill will generate a substantial surplus of bioenergy in the form of heat and electricity will be considered in the context of the region's medium and longer term best energy related interests. Meeting the demands of rapidly changing and greening energy markets requires forward thinking and the proactive seeking of new solutions. The mill will not only generate energy, but also various types of biofuels through its wood procurement system and production processes."
Under the letter of intent, the companies commit to jointly explore a multitude of energy related cooperation options with a view to map out the required technical solutions and investments.
In a joint statement, KaiCell CEO Hannu Heikkinen and Loiste CEO Reino Huusko stated, "We see very encouraging potential in aligning this major mill project with the region's energy targets and objectives. Our joint approach has the potential to contribute significantly towards carbon neutrality and an ecologically balanced energy system."
KaiCell Fibers has proposed to build a EUR 900 million pulp and bioproducts mill in Paltamo, Finland. The mill's projected annual capacity is 600,000 ADMT (air dried metric tonnes) of which about 85% will be NBSK (Northern Bleached Softwood Kraft) pulp, and about 15% will be chemical pulp from hardwood (birch), also known as BHKP (Bleached Hardwood Kraft Pulp).
KaiCell Fibers Oy/Ltd is a company funded by private investors and the Regional Council of Kainuu (Kainuun Liitto) with the objective of building and operating a state-of-the-art pulp (NBSK) and bioproducts mill in Paltamo, Finland. For further information, visit: www.kaicellfibers.com.
SOURCE: KaiCell Fibers
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