200 000 t/y biocoal pellet production to start in closed Norwegian pulp mill
Norwegian Viken Skog, one of Norways largest forest owners has through it´s subsidiary Trek Lyngen has entered into an agreement with bio coal producer Arbaflame to start a production in the earlier pulp mill site Follum, aquired by Viken Skog in March 2012. The technology to be used will be Arbaflames patented steam explosion technology. Arbaflame has already produced more than 100,000 tonnes biocoal in it’s test facility in Kongsvinger.
The investment framework for the 200 000 t/y plant is approx. NOK 350 million. The parties aim at an investment decision in 2014 with following construction start and will present the project for public and private investors. In addition, it will seek cooperation and investment from public funding agencies.
The biocoal to be produced at Follum is made from 100 percent wood. It is hard, water resistant and dust-free, and has almost the same properties as fossil coal.
Arbaflames earlier production has been supplied to eight power plants in Europe and Canada. The first full-scale test was conducted by Vattenfall’s coal power plant Reuter West Berlin, says says Bjorn Knapp Forest, chairman and majority owner of Arbaflame.
Arbaflames majority shareholder is Pemco AS, which also owns Peterson Packaging Group and Pemco AS pellets with wood pellet production in Norway and Sweden.
Viken Skog’s bought the closed plant Follum for 60 mill. NOK in 2012 from Norske Skog with the intention to establish new production, says CEO of Trek Lyngen AS, Rolf Jarle Aaberg.
Now a large area of the site is demolished and cleaned but the timber handling yard and a modern chipping plant are left intact for the new owner as well as a heating plant used for district heating to the city of Hönefors.
Trek Lyngen will help to increase the processing of timber in Norway and plans, among other things, a large-scale production plant for energy and chemistry products at Follum. Several projects are under development for the realization in the years ahead.
This can help to provide Norwegian forest industry a much needed boost, says CEO of Viken Skog, Ragnhild Borchgrevink.
Viken Skog is the largest forest owner cooperation with approx. 10,600 shareholders in Eastern Norway.