Due to begin operations in spring 2010, the power plant will process logging residues, stumps, small wood from thinnings, as well as peat, to generate heat and electricity for the UPM mill and Lappeenrannan Energia Oy.

“The new power plant will improve the security of energy supply to our Kaukas mills,” said Anja Silvennoinen, senior vice president at UPM. “It is also the latest example of UPM’s long-term strategy to utilise biofuels in energy production.”

UPM’s Kaukas mill currently has a 30-year-old steam power unit, while an additional gas power plant also helps provide heat and electricity for Lappeenrannan.

The new power plant is set to replace both of these in order to improve efficiency and the use of waste products from the mill, all the natural gas facility will remain as a back up to the new wood-fuelled power plant.