4 May 2005 - Aker Kvaerner has secured a contract for delivery of a biofuel fired boiler plant in Sweden and also several new assignments for power boiler modernizations in Sweden, Lithuania and Slovakia. The new contracts have a total value of approximately €65 million ($84m).

"These new contracts show that green energy production is a growing trend in Europe. The plants are investing in new boilers or modernizing their existing units with fluidized bed technology to be able to use various kinds of demanding biofuels," said Lennart Ohlsson, president of Kvaerner Power.

Kvaerner Power will deliver a power boiler plant to the European paper, board and packaging company, Kappa Kraftliner AB's mill in Pitea, in Northern Sweden. The investment will increase the mill's electricity production through the use of biofuels.

Using bubbling fluidized bed (BFB) technology, the 132 MWth boiler will burn biofuels like bark, saw dust, forest residue, peat and sludges. It will also burn recycled fibre reject and wood waste. Kvaerner will also deliver a flue gas cleaning system. The boiler plant is designed to fulfil the requirements of the EU waste incineration directive for co-firing. The power boiler plant will be ready in the spring of 2007.

Another order was placed by the municipal energy company Angelholm Energi AB on the south-west coast of Sweden for the modernization and expansion of its Akerslund cogeneration plant.

The boiler rebuild by Kvaerner Power will increase the plant's thermal capacity by 50 per cent and will enable it to fire from a range of fuels including demolition wood. The rebuilt boiler will comply with the new and tougher environmental EU requirements. The boiler will be ready for start-up at the end of 2006 while the on-going similar boiler modernization from Kvaerner Power will be ready at the end of 2005.

A third order announced by Kvaerner was awarded by the Lithuanian energy company Vilniaus Energija UAB, owned by the French company Dalkia. Kvaerner will update the boiler to burn biofuels with bubbling fluidized bed technology. When it enters commercial operation at the start of 2006, it will have a thermal capacity of 60 MW.

The international paper company Mondi Business Paper has also contracted Kvaerner to modernize a power boiler. The company's Ruzomberok mill in Northern Slovakia was modernized by the same company in 1998 to use the bubbling fluidized bed technology. This contract will enable bark to be used as fuel. The modernized boiler with the thermal capacity of 83 MW will be ready for start-up at the end of 2005.