Arauco, Stora Enso to Select Site for Grassroot Biomass-Fired Pulp Mill in Uruguay

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Researched by Industrial Info Resources (Sugar Land, Texas)--A joint venture formed by Chilean company Arauco (Santiago) and Finnish-Swedish transnational Stora Enso (NQB:SEOA.Y) (Helsinki) has capital approval and is selecting a site to build a grassroot pulp mill that will utilize biomass (wood wastes, bark, shavings and sawdust) to generate 230 megawatts (MW) of electricity.

Once operational, the mill will produce 1.5 million tons of pulp per year. The companies anticipate completing the site selection and permitting phase by March 2010. The total investment cost of the project is estimated at $2 billion.

The project seeks to install extrusion lines, spinners, motors, drivers, pumps, separators, screens, cleaners, and dryers. The 230-MW facility will be equipped with three steam turbines of 75, 65 and 90 MW. According to company officials, the electricity surplus will be sold to the national grid. Infrastructure construction is tentatively scheduled for January 2011, and the plant is expected to be brought online in the third quarter of 2012.

Arauco is one of the largest forestry companies in Latin America. It commercializes and produces kraft wood pulp, sawn timber and panels. The enterprise exports products to more than 50 countries worldwide.

Stora Enso is a Swedish-Finnish global company that produces and commercializes paper, packaging, and forest products. It has more than 85 facilities in 35 countries worldwide and it has 29,000 employees. At present, the company's total annual capacity for paper and board is 12.7 million tons, and the total annual capacity for sawn wood products is 6.9 million cubic meters.

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