SCA has approved an investment of approximately $43 million (SEK 380m) in expanded cooperation between SCA’s industries in the Sundsvall region and Sundsvall Energi AB. The agreement will enable SCA to increase its deliveries of energy to Sundsvall’s district heating grid.

The investments will cover the rebuilding of two boilers, a new facility for handling and grinding wood pellets and equipment for cleaning flue gases at Ortviken paper mill. Östrand pulp plant will also be connected to Sundsvall’s district heating grid as part of the investment.

As a result of the investments deliveries of heat derived from renewable fuels to Sundvall’s district heating grid will increase. Ortviken paper mill will then have the capacity to deliver up to 300 GWh/a based on wood pellets from SCA’s BioNorr facility in Härnösand.

Oil consumption in Sundsvall will be reduced by a total of 25,000 cubic meters annually as a result. For Ortviken, the annual decrease in oil consumption will be 4,500 cubic meters, thereby reducing the mill’s already low carbon footprint by about 40%.

The new facilities are expected to be operational in November 2013.