Valmet to supply a multifuel boiler and a flue gas cleaning system to Kushiro Thermal Power Plant in Japan

Valmet Oyj's press release on March 9, 2017 at 11:00 a.m. EET

Valmet will supply a multifuel power boiler and a flue gas cleaning system to Kushiro Thermal Power Plant Inc. located in the city of Kushiro, Hokkaido, Japan. The new boiler plant will enable the customer to achieve a stable power supply at extremely high thermal efficiency.

The order is included in Valmet's first quarter orders received in 2017. The value of the order will not be disclosed. The value of this kind of a delivery is usually around EUR 50 million.

This boiler delivery will be done by Valmet in cooperation with its local Japanese partner JFE Engineering (JFEE). This order is a continuation to Valmet's and JFEE's cooperation. The cooperation combines Valmet's high efficiency technology solutions with JFEE's strong market presence in Japan and capability to supply EPC power plants. Valmet's first multifuel boiler order to Japanese markets based on this cooperation agreement was announced in November 2016.

Valmet's multifuel boiler and flue gas cleaning system delivery will be part of the 112 megawatt (MWe ) power plant delivered by JFEE. Installation works will start in 2018. Commissioning and start-up are scheduled for the second half of 2019.

"JFEE's strong local presence and experience as an industrial boiler supplier and EPC (engineering, procurement and construction) contractor for power plants combined with Valmet's cutting-edge technologies were key to winning this delivery contract in Japan," says Keiichi Nagaya, Head of Sales and Marketing, JFE Engineering.

"Japan is investing in renewing its power production assets. The market is very good for the fluidized bed technology as there is an increasing focus on bioenergy and need for fuel flexibility," says Jouni Koskinen, Senior Sales Manager, Energy Sales, AP Japan, Valmet.

Information about Valmet's delivery

Valmet's delivery includes a CYMIC circulating fluidized bed (CFB) boiler for co-firing coal and biomass. Used biomass can be either wood pellets, PKS (crushed palm kernel shells) or their mixture. Thermal power of the boiler delivered by Valmet is 265 MWth and the electricity production capacity of the whole power plant will be 112 MWe. Efficient emission control will be ensured by NOx-reduction system and bag house filter.

Information about the end customer Kushiro Thermal Power Plant Inc.

Kushiro Thermal Power Plant Inc.'s owner companies / financiers are Kushiro Coal Mine, F-Power, IDI Infrastructures and Taiheiyo Kohatsu Inc.

Information about JFE Engineering

JFE Engineering is part of the JFE Group. The company has its roots in steelmaking and shipbuilding businesses and has expanded its engineering business in the fields of energy and the environment, urban infrastructure and industrial machinery by blending and evolving its technologies. JFE Engineering Corporation is a 100% subsidiary of JFE Holdings Inc. that is listed in Tokyo Stock Exchange.

Corporate Communications

For further information, please contact:
Setsuo Suzuki, President, Japan, Asia Pacific Area, Valmet, tel. +81 90 4579 9858
Kai Janhunen, Vice President, Energy Business Unit, Valmet, tel. +358 10 676 2602

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2016 were approximately EUR 2.9 billion. Our 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

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