Metso to deliver power plant to Bomhus Energi, Sweden

Metso Corporation’s press release on October 26, 2010 at 8:45 a.m. local time

Metso will supply a new biomass-fired power boiler, utilizing bubbling fluidized bed technology, and a flue-gas cleaning and condensation system to Bomhus Energi AB. The value of the order is over 50 million EUR, and the order will be included in Energy and Environmental Technology’s Q3 orders received. The plant will start up in early 2013.

Korsnäs AB has supplied district heating water to Gävle Energi AB for thirty years. The two companies have, through the jointly owned company Bomhus Energi, decided to extend their cooperation and chosen Metso technology to secure the delivery of district heating to the town of Gävle, and produce steam and electricity from a new turbine for Korsnäs. The planned plant will be located inside the present premises of Korsnäs pulp mill.

The newly established company Bomhus Energi is formed to own and operate the new co-generation power plant. The new company is a relatively unique constellation in Sweden, due to the joint ownership of one private company and one community-owned company.

“The new boiler plant is part of a large investment to secure energy, both in Korsnäs AB’s factories and in Gävle Energi AB’s district heating system. At the same time our region is making a considerable environmental gain, as our old boiler, which will now be replaced, is not meeting all the current environmental standards,” says Mats Törnkvist, Technical Director, Korsnäs AB.

“We have chosen Metso as our supplier because we know that Metso has extensive experience in building this particular type of plant. The proper functioning and reliability of the new boiler – which runs almost nonstop all year - are crucial and important parameters within our business.”

“Discussions regarding technical issues have been very constructive,” says Kari Remes, General Manager, Sales & Marketing, Power business line. “Metso and Bomhus Energi have a joint understanding in and drive to find optimal and innovative solutions for the project.”

Korsnäs is one of Sweden’s leading forestry companies, with three production facilities: Gävle, Frövi and Rockhammar. Production capacity amounts to 1.1 million tonnes of cartonboard and paper annually, with integrated pulp production.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 27,000 employees in more than 50 countries.

Further information for the press, please contact: Kai Mäenpää, Vice President, Capital Projects, Power business line, Metso, tel +358 20 141 2410 Kari Remes, General Manager, Sales & Marketing, Power business line, Metso, tel +358 20 141 2413