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KaiCell signs letter of intent with Loiste to set out framework for developing optimal energy related synergies at its Paltamo mill in Finland

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KaiCell signs letter of intent with Loiste to set out framework for developing optimal energy related synergies at its Paltamo mill in Finland

May 06, 2021 - 07:33
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KAJAANI, Finland, May 6, 2021 (Press Release) -The letter of intent, which was signed by the parties this week, sets out a framework for developing optimal energy related synergies between KaiCell Fibers Oy’s planned 600 000 t/a 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.

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.”

Loiste Group Briefly

Loiste is a Finnish power service group with solid experience of the sector. Loiste Group comprises Kajave Oy (electric grid ownership and management), Loiste Lämpö Oy (regional district heating) and Loiste Energia Oy (energy services and electric power generation).

Loiste’s electricity network company operations are located in Kainuu and Northern Ostrobothnia. Loiste Lämpö Oy operates the district heating sector in Kajaani.

Our offices are located in Kajaani and Espoo.