Valmet to supply a biomass based power plant to Skövde Värmeverk AB in Sweden

Valmet Corporation's press release on October 13, 2014 at 10:00 a.m. EET

Valmet will supply a complete biomass based power plant to Skövde Värmeverk AB in Skövde, Sweden. The new power plant will produce district heat to the local district heat network and electricity to the national grid. It is scheduled to start up in late 2016. The value of the order is about EUR 30 million. The order is included in Valmet's third quarter 2014 orders received.

The boiler will be fueled with wood chips and bark. With the investment, Skövde Värmeverk will be able to reduce the amount of fossil fuel used, and meet the increasing demand of district heating in its operating area.

"Block 4 is a large environmental project for us. A biomass fired power plant is first of all an investment in the environment. Currently we need to run heavy oil fired power plants as soon as the temperature goes down to -2 C. Once Block 4 goes on stream, we will be able to let the temperature drop down to -15 C before we need to use oil in our production," says Carl-Johan Andersson, Managing Director, Skövde Värmeverk. "This is the largest environmental investment that the municipality of Skövde has ever made."

"We are extremely proud of the trust shown by Skövde Värmeverk in giving us this order. We have worked intensively to meet the customer's needs and adapted the plant to meet their high requirements for functionality and quality," adds Mikael Barkar, Senior Sales Manager, Valmet.

New Skövde Värmeverk's biomass based powerplant (on the right) will be located next to existing waste to energy plant.

Technical information about the delivery

Valmet's complete process delivery from fuel reception to stack will include a bubbling fluidized bed (BFB) boiler plant including a biomass-fired HYBEX boiler, a flue gas condensing scrubber, a combustion air moisturizing tower, CO₂ and NH₃ scrubbers, condensate treatment, electrification, instrumentation and automation. Excluded are the turbine, generator and civil works.

The boiler will have a thermal capacity of 38 MWth. Additional 8.5 MWth is recovered from water vapor using Valmet's flue gas condensing technology.

Information about Skövde Värmeverk

Skövde Värmeverk is a limited liability company owned by Skövde municipality and was established in 2003. The company's task is to produce environmentally friendly electricity and district heating in Skövde municipality.

VALMET CORPORATION
Corporate Communications

For further information, please contact:
Mikael Barkar, Senior Sales Manager, Projects Sales Pulp and Energy Business Line EMEA and Scandinavia, Tel. +358 40 534 4607

Philip Segell, Chairman of the Board, Skövde Värmeverk AB, Tel. + 46 70 227 5571

Carl-Johan Andersson, Managing Director, Skövde Värmeverk AB, Tel. +46 70 209 5005

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.

Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.

The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.

Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.