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VIDA Paper and Lessebo Municipality enter joint venture for bio-energy distribution

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VIDA Paper and Lessebo Municipality enter joint venture for bio-energy distribution

March 29, 2010 - 20:16
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LESSEBO, Sweden , March 26, 2010 (Press Release) -VIDA Paper AB and Lessebo Municipality has signed a deal regarding distribution of heat to the Lessebo community. Lessebo Municipality will successively invest in the distribution network. In the first stage, investments will be made to secure distribution of 50% of the total projected volume, with start from autumn 2010. The distribution network is projected to reach its full expanse in the beginning of 2013. For this first stage, VIDA Paper AB will invest in; heat exchanger, accumulation tanks and other support techniques at a value of approximately SEK15-20 million.

In Stage two, when the network will reach its fullest expanse, further investments are needed to be able to cover the demand from the community. VIDA Paper AB will then have to increase its heat producing capacities by investing in a new bio-fuel heater, either based on hot water or steam. The total worth of such an investment would be between SEK25-40 million. A choice of a steam based technique, would also enable VIDA Paper AB to complement the heat production with production and distribution of electricity of up to 27 GWH .

If the whole project is realized it would mean a total investment of approximately SEK 80 million for VIDA Paper AB.

The objective of whole project is to increase availability of environmentally friendly energy; heat and electricity, both locally and on the open Nordic market.

"This is another step in line with the strategy of joint paper and energy production, that was the basis for the purchase of Lessebo Mill and this will secure the future of VIDA Paper AB further", says VIDA group's CEO Santhe Dahl.

"I see this as something very positive and progressive to be able to make such a strategic important investment in the future as this is. This is good news both for VIDA Paper AB and for future generations", says VIDA Paper's MD Jan Fjeldså.