UPM invests to cut CO2 footprint

UPM aims to reduce its CO2 emissions by 5% by investing in a combined-heat-power (CHP) plant at its Nordland paper mill in Dorpen, Germany.

It is estimated that the gas-fired power plant, expected to go on grid in Q3 2022, will decrease UPM’s CO2 footprint by 300 000 tonnes. UPM said it has proven the concept at its Schongau mill in Bavaria with good results. The plant will cover the mill’s heat demand while enabling UPM’s active participation in the German electricity markets. (The new facility supports the German energy transition “Energiewende” by contributing to the stability of the public power system.) The 95m Euro investment, which has a payback time of three years, will bring annual cost savings of more than 10m Euro from 2023 said UPM. The investment supports the phase out of coal power generation in Germany and is in line with the government’s goal of a 65% share of renewable electricity in total electricity consumption by 2030. The plant will be built under the German Combined-Heat-Power Cogeneration Act. “This investment will provide a stable and economically predictable power and heat supply, significantly strengthening the competitiveness of the four graphic and speciality paper machines at UPM Nordland. By providing flexible generation capacity, the CHP plant will support overall system stability and integration of increasing renewable power generation. As an energy intensive industry player, we thereby take an active role in the transformation of the German energy system towards a minimal carbon footprint”, said Winfried Schaur, executive vice president, communication papers, UPM.