The new facility will be designed for a total output of 150MW and is estimated to produce 325GWh of electricity and 420GWh of thermal energy annually.

The company said the facility will meet the mill’s entire energy needs in the form of electricity and steam.

Biofuel boiler signifies a radical shift in the mill’s energy supply from fossil natural gas to biofuels, which will mean that fossil carbon dioxide emissions from the mill are largely eliminated.

The new bio boiler is expected to be commissioned in April 2013.

Holmen president and CEO Magnus Hall said the investment also reflects the company’s intention to continue developing paperboard production at the mill.