The investment will help in converting the mill’s energy supply from fossil-based natural gas to biofuels, as part of the plan to eliminate carbon emissions.
A new recovery boiler that burns biofuels will be installed at the mill, which is expected to output 150 MW.
The new plant will produce 325 GWh of electricity and 420 GWh of thermal energy in a year.
Iggesund Paperboard’s UK managing director Ola Schultz-Eklund said the company plans to make the West Cumbria mill a centre of excellence for low-carbon energy production, under a £2bn ($3.2bn) initiative, "Britain’s Energy Coast."
"The Energy Coast initiative was definitely both a source of energy and knowledge to bring this project to the decision-making stage," Schultz-Eklund said.
The UK mill produces around 200,000 tonnes of the Incada brand of folding box board.
