UPM's Kaukas Mill Begins Power Plant Project in Lappeenranta, Finland

Helsinki, Finland, 10 March 2008 -- Pohjolan Voima, Lappeenrannan Energia, a city-owned power company, and UPM are building a joint power plant at UPM's Kaukas mill site in Lappeenranta, Finland. The laying of the cornerstone of the biofuel power plant took place on 10 March. This large building project has advanced partly ahead of schedule. The construction work was started in July 2007 and the new plant will start up in spring 2010.

Kaukaan Voima's plant will generate process heat and electricity for UPM's Kaukas mills, and electricity and district heating for Lappeenrannan Energia Oy. Its thermal power is equivalent to about 385 MWTH and electrical power to 125 MWE. The plant's energy sources are bark and biomass (i.e., logging residues, stumps, and small wood from thinnings, as well as peat).

The new power plant will replace the old steam power unit of Kaukas mills and most of the energy generation capacity of Lappeenrannan Lämpövoima Oy's old Mertaniemi power plant. It will improve the security of energy supply to Kaukas mills and secure district heat supply for Lappeenranta citizens.

Jari Niemelä, chairman of the board of Kaukaan Voima Oy, said: "I anticipate that this plant will break records and will become the biggest user of energy wood in Finland. Nearly 2% of Finland's renewable energy will be generated in this plant."

Jyrki Ovaska, president of UPM Magazine Paper Division, said "Kaukaan Voima's new power plant will improve the cost efficiency of the Kaukas mill complex and secure energy supply for the plants in the future. Also, it is yet another example of UPM's determined pursuit to optimize wood use and make use of biomass fuels."