Södra Cell Mörrum and Karlshamn Energi Announce Renewal of Partnership.
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Södra Cell Mörrum (Mörrum, Sweden) and Karlshamn Energi (Karlshamn, Sweden) announced early this week the renewal of a long-term partnership. The companies signed a new 10-year agreement for district heating supplies. The new agreement is reported as a result of Södra Cell’s investment in a new evaporation plant, which will increase Södra’s supply capacity.
Under the renewed agreement, Södra Cell will supply residual heat from biofuel production to Karlshamn Energi’s district heating network. The district-heating collaboration between these two parties began in the late 1980s and has evolved over the years as the district heating network has been expanded. The district heating network has now been extended to the urban areas of Asarum, Karlshamn, Mörrum and Svängsta, and supplies more than 1,500 customers.
"Södra’s Board of Directors has approved major investments in Mörrum. The new seven-effect evaporator is an important step in our strategic plan to expand production capacity. In addition to district heating, it also allows for increased energy supplies of electricity and biofuels, which is highly positive," said Mill Manager Stefan Sandberg, Södra Cell Mörrum.
"I am very happy that we have signed this new long-term agreement, which will ensure a continued focus on expansion of the district heating network, stable prices for our customers and a fossil-free district heating supply," added Anders Strange, CEO of Karlshamn Energi AB.
Production at Södra Cell Mörrum started in December 2011 and has increased steadily since opening. Following the company’s recent decision to invest a significant SEK 1 billion in the facility, its production of dissolving pulp is expected to increase even further as of 2018. Södra started with the expansion of the mill in October of 2014.
