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Metsä Fibre signs agreement with Eltel to build power line for its new bioproduct mill in Kemi, Finland

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Metsä Fibre signs agreement with Eltel to build power line for its new bioproduct mill in Kemi, Finland

April 13, 2021 - 05:55
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STOCKHOLM, April 13, 2021 (Press Release) -Metsä Fibre, part of Metsä Group, and Eltel have signed an agreement to build a power line from the new bioproduct mill being constructed in Kemi to the Keminmaa substation via the Pajusaari–Isohaara–Keminmaa route. The new 110 kV power line will be about 15 kilometres long.

The bioproduct mill, which operates completely without fossil fuels, will produce 2.0 TWh of renewable electricity every year, equivalent to about 2.5 per cent of Finland’s total electricity production. The mill will have an electricity self-sufficiency rate of 250%, and this will further strengthen Metsä Group’s position as a major electricity producer relying on renewable Finnish fuels. The new power line will transmit bioelectricity from the bioproduct mill to the national grid.

Metsä Fibre and Eltel co-operation in the Kemi bioproduct mill project has already started earlier with the planning of power line. Actual construction work will begin in spring 2021, with the contract being completed by summer 2022. The degree of Finnish origin of the contract is very high, 85%.

“We want to partner with the best professionals in every field to build a cutting-edge bioproduct mill in Kemi, Finland. We require our partners to commit to the goals of the project in terms of safety, schedules and quality. Eltel’s operations comply with all of these principles. Together, we will build a significant part of the mill complex – a new power line that will supply the bioelectricity produced at the mill to the national grid,” says Jari-Pekka Johansson, Project Director for the bioproduct mill at Metsä Fibre.

"This is a significant agreement for us, and we’re excited to be part of the largest investment in the history of the Finnish forest industry," says Juha Luusua, Managing Director of Eltel Networks Oy.

The agreement between Metsä Fibre and Eltel also includes dismantling the existing power line as well as modifying six transmission line towers  in Kemi. The delivery also includes 110 kV underground cable works at Isohaara and Keminmaa substations.

Metsä Group’s Kemi bioproduct mill project is progressing according to plan, with earthmoving and pile driving currently being carried out at the mill site. About 300 people and about 130 different companies are working at the site. The bioproduct mill project’s degree of Finnish origin is estimated to be high, about 70%. During the construction phase, the mill’s employment effect is estimated at nearly 10,000 person-years, of which more than half will be in Kemi. The total number of employees working during the construction phase is estimated to be about 15,000. The investment will secure the 250 jobs at the current Kemi mill for the coming decades. Through its direct value chain, the new bioproduct mill will employ around 2,500 people in Finland, some 1,500 more than the employment effect of the current Kemi pulp mill.

Totalling EUR 1.6 billion, the investment in Metsä Group’s Kemi bioproduct mill is the largest in the history of the Finnish forest industry. The mill will produce 1.5 million tonnes of softwood and hardwood pulp per year, as well as many other bioproducts.

Metsä Fibre

Metsä Fibre is a leading producer of bioproducts, biochemicals and bioenergy. Metsä Fibre is the world’s leading producer of bleached softwood pulp and a major producer of sawn timber. Currently employing approximately 1,300 people, the company’s sales in 2019 totalled EUR 2.2 billion. Metsä Fibre is part of Metsä Group.

Metsä Group

Metsä Group is a forerunner in sustainable bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh fibre paperboards and tissue and greaseproof papers.

In 2019, Metsä Group’s sales totalled EUR 5.5 billion, and it employs approximately 9,300 people. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 100,000 Finnish forest owners.