The €180m project would generate 400MW of power and replace the 40-year-old steam power plant at Kaukas.

UPM and Lappeenrannan Energia Oy are examining the profitability and prerequisites for building the joint power facility in Lappeenranta. The companies will also discuss carrying out the project in co-operation with Pohjolan Voima Oy.

Bark and other logging residues, such as stumps, are envisaged as the fuel source.

The plant, which could be operational by the end of 2009, would generate process heat and electricity for UPM’s Kaukas mills and power and district heating for Lappeenrannan Energia.

The building cost would be shared by the companies.