Emissions, Hydroelectric, Renewables

Holmen agrees long term power deal with Vattenfall

18 March 2005 – The Holmen milling company has agreed a ten-year deal under which Vattenfall will supply it with half of its electricity needs, amounting to some 1.5 TWh of electricity per year.

Around one-third of the electricity Holmen requires comes from its own production at wholly or part-owned hydroelectric power stations and back pressure production at its mills. In 2004, the Group’s total electricity consumption in Sweden amounted to some 4.3 TWh.

“This is an important agreement for Holmen, which is active in a world with great uncertainty regarding the supply of electricity in the future,” comments Magnus Hall, Holmen’s President and CEO, “and we are pleased to be able to extend our close, long-standing relationship with Vattenfall.”

In connection with the supply agreement Holmen and Vattenfall have also signed an agreement on joint measures to improve energy and process efficiency at all of Holmen’s mills with the object of strengthening Holmen’s competitive position by identifying and implementing new measures to save energy.

“The long-term supply and efficient use of electricity are important factors for our customers in basic industries. We are therefore very pleased that Holmen has displayed continued confidence in our relationship,” says Hans von Uthmann, head of Vattenfall Nordic.