Energy costs in New Zealand have risen substantially in recent years, and Norske Skog is accordingly playing an active role in developing the country’s future electricity supplies. It has now joined forces with the state-owned Mighty River Power (MRP)company to build a new geothermal power station at the Norske Skog Tasman paper mill in Kawerau.
With construction starting this November, the facility is due to be completed towards the end of 2008. Norske Skog Tasman will utilise about 70 megawatts of a total capacity of 90 MW.
That in turn represents two thirds of the mill’s future electricity requirements at a very competitive price. MRP will own the generating facility, which is costed at NOK 1.2 billion.
A thermal power station of this size represents a technological breakthrough for this type of energy production, and will also simplify power supply for the local community area.
“Collaboration with local electricity generators is highly significant for our operations in New Zealand,” says senior vice president Ketil Lyng, who is responsible for Norske Skog’s activities in Australasia.
“The agreement with MRP will ensure predictable and competitive energy prices for our mill.”