UPM announced that it plans to invest EUR 85 million to build a new combined heat and power (CHP) plant at its Schongau mill in Germany.
The new power plant will generate process heat as well as electricity for the mill, while also providing sustainable and energy efficient district heating for roughly 750 households and public institutions such as local school and hospital in Schongau.
The renewed energy supply at the mill will be based on the highly efficient combined heat and power technology utilizing gas as a fuel, UPM said.
"The new gas power plant will improve the security and self-sufficiency of energy supply to our mill," said Winfried Schaur, General Manager, UPM Schongau.
"The renewal of the energy generation ensures efficient production and will safeguard the competiveness of the mill.
"Furthermore, it guarantees a sustainable paper production loop based on innovative and low-emission technologies," he added.
The gas power plant will replace an old plant facility which has operated more than 40 years, UPM said. During the past decade, UPM has invested over EUR 1 billion on carbon neutral power and heat generation at its mill sites.
Start-up is expected by the end of 2014.
