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Valmet to supply biomass boilers in Spain, Chile

Forest biomass. Author: Oregon Department of Forestry. License: Creative Commons, Attribution 2.0 Generic.

October 4 (Renewables Now) - Finland's Valmet Corp (HEL:VALMT), a supplier of process technologies for the pulp, paper and energy industries, will deliver biomass boilers in Spain in Chile under two orders, announced on Wednesday.  

Under one of the orders, Valmet will supply a biomass boiler with thermal power capacity of 130 MW to a new biomass power plant in Teixeiro, Spain of Greenalia. The electricity capacity of the plant will be 50 MW. According to the announcement, the plant will be fuelled by forest biomass, mainly eucalyptus and pine wood, and will contribute to the maintenance of local forests and the prevention of fires. It is scheduled for takeover in January 2020.

The order has been awarded by the engineering, procurement and construction (EPC) contractor for the project -- a joint venture between Acciona Industrial and Imasa.

The boiler to be supplied in Chile is part of a larger order for the supply of pulp mill technology from Arauco. Valmet has signed a letter of award (LoA) with the Chilean company as part of its MAPA project, which will expand current production capacity and build a new pulp production line at the Arauco Mill in the Bio Bio Region.

The deal includes pulp drying and baling, a recovery boiler and a biomass boiler with a thermal capacity of 160 MW. While the contract's exact value was not disclosed, Valmet said a project of this size is usually worth between EUR 250 million (USD 287m) and EUR 300 million.    

The first order is included in Valmet's third quarter of 2018 orders received, while the second is expected to be included in the fourth quarter.  

(EUR 1 = USD 1.149)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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