ARCTIC PAPER S.A., Europe’s second largest producer of book paper by volume and one of the leading manufacturers of graphic fine paper in Europe, has completed expansion of the combined cycle power plant to include the second gas fuelled bloc having the installed power of 10.9MWe in Kostrzyn nad Odrą mill. The expanded power plant will fully cover the demand of production lines in Kostrzyn paper mill for electricity and thermal energy and will ensure power supply for the future expansion of the mill. Completion of the new investment project will allow Arctic Paper to fully adjust to environmental requirements and limit paper production costs in Kostrzyn. Capital expenditure related to the construction of the second gas block was over PLN 70m, of which PLN 52.4m was contributed from own funds, while PLN 17.6m was granted by EkoFundusz Foundation that supports ecological projects.

Expansion of the combined cycle power plant (CCPP) started in 2008 and has been completed in September 2009. Together with the existing block fuelled by gas the plant’s total thermal power currently amounts to 169 MWt, while electric power stands at 40,4 MWe.

The CCPP’s first block was commissioned in 2006. The total capital expenditure of that project amounted to PLN 92m. The investment was financed in 28% from a subsidy from the Polish National Fund for Environmental Protection and Water Management (NFOŚiGW) and a grant from EkoFundusz.

Use of both electricity and thermal energy generated in the same technological process (so called cogeneration) for paper production in Kostrzyn, ensures a high overall efficiency of the plant (over 90%) and makes the company eligible to obtain rights to the so-called yellow certificates the sale of which on the market will allow further energy cost cutting in Kostrzyn.

Basic parameters of the CCPP of Arctic Paper Kostrzyn S.A. in Kostrzyn nad Odrą (Block I and II)

Thermal power                             169 MWt
Electric power                               40.4 MWe
Investment expenditure                PLN 162m
EU, NFOŚiGW, EkoFundusz grants   PLN 45m
Annual gas consumption               141 m Nm3
Reduced emissions of:
dust                                           over 99%
green gases                                over 60%

“Commissioning of another block of the combined cycle power plant that uses natural gas means not only higher adjustment to the environmental and ecological requirements, but also achieving a fully independent position in terms of power generation, since the entire demand for thermal energy and electricity of the Kostrzyn paper mill will be satisfied from its own source. Equally important is the fact that gas we consume is derived from the local deposits, which makes us completely independent from a geopolitical situation. We are a dynamically growing company that pays much attention to its cost effectiveness, while maintaining the highest quality of its products. I’m convinced that the current investment project, and also next ones that we’re going to carry will contribute to strengthening of our market position as Europe’s second largest manufacturer of book paper, by volume and one of the leading manufacturers of high-quality graphic paper in Europe”, said Michał Jarczyński, President of the Management Board of Arctic Paper S.A.