Aker Kvaerner contracts for environmentally friendly energy production

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

Kvaerner Power, part of the Aker Kvaerner group, will deliver a power boiler plant to Kappa Kraftliner AB's mill in Piteå, in Northern Sweden. The company is part of Kappa Packaging which is a leading European paper, board and packaging company with more than 100 production sites spread all over Europe.

With this investment Kappa Kraftliner will increase the mill's electricity production. The new capacity is based on biofuels and therefore regarded as green energy. The combustion of rejects and sludge instead of landfilling and reduction of the mill's oil consumption will create positive environmental effects. By replacing the over 40 year old existing boiler the mill's maintenance costs will be reduced and the availability will be secured.

Kvaerner Power's delivery will consist of a power boiler (132 MWth) using bubbling fluidized bed (BFB) technology. The boiler will burn biofuels like bark, saw dust, forest residue, peat and sludges. It will also burn recycled fibre reject and wood waste. The delivery consists also of 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.

The municipal energy company Ängelholm Energi AB on the south-west coast of Sweden is modernising and expanding its Åkerslund cogeneration plant to attain increased capacity and higher environmental standards for the future. Through this investment the company will also be well prepared for the increasing demand of district heat. The boiler rebuild by Kvaerner Power will increase the plant's thermal capacity with 50% and there will be extended possibilities when it comes to choosing various types of fuel, such as demolition wood. By increasing the proportion of renewable biofuels, like peat, forest residue and recovered wood, emissions of carbon dioxide will be sharply reduced. The rebuilt boiler will comply with the new and tougher environmental EU requirements. In addition to carbon dioxide levels, other emission levels will be reduced, ensuring a better environment.

The boiler will be ready for start-up at the end of 2006 while the on-going similar boiler modernisation from Kvaerner Power will be ready at the end of 2005.

The Lithuanian energy company Vilniaus Energija UAB owned by the French company Dalkia will modernise its old power boiler to produce green electricity. Kvaerner Power will supply the modernisation for the boiler to burn biofuels with bubbling fluidized bed technology. The thermal capacity of the boiler will be 60 MW. The start-up of the boiler will be in the beginning of 2006.

The international paper company Mondi Business Paper will modernise the power boiler at its Ruzomberok mill in Northern Slovakia. The mill's original power boiler from 1980's has been modernized to use the bubbling fluidized bed technology by Kvaerner Power in 1998. Now the usage of bark as fuel and the mill's energy efficiency will be increased by the capacity upgrading supplied by Kvaerner Power. The modernised boiler with the thermal capacity of 83 MW will be ready for start-up at the end of 2005.


Notes to editors:
Kvaerner Power's BFB technology for demanding biofuels
Kvaerner Power is a forerunner and an expert in bubbling fluidized bed (BFB) boilers for environmentally friendly power generation from biofuels and recycled fuel with steam capacity ranging from 20 to 300 MWth. Kvaerner Power's HYBEX® boilers using BFB technology, are suitable for wide range of fuel moisture from thermally dried bark to high moisture forest residue.
Kvaerner Power's environmental systems
Kvaerner Power has a long experience in the delivery of flue gas cleaning plants. The company also offers flue gas condensing plants.
For further information, please contact:
Torbjorn Andersen, Senior Vice President, Group Communications, Aker Kvaerner. Tel: +47 928 85 542

Terttu Tuominen, Communications Manager, Kvaerner Power. Tel: +358 20 141 2440 or +358 40 501 1415.

Investor relations:
Lasse Torkildsen, VP Investor Relations, Group Communications, Aker Kvaerner. Tel: +47 67 51 30 39 or +47 911 37 194.
AKER KVÆRNER ASA, through its subsidiaries and affiliates ("Aker Kvaerner"), is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner span a number of industries, including Oil & Gas production, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. Aker Kvaerner has aggregated annual revenues of approximately USD 4.5 billion and employs around 22,000 employees in more than 30 countries. The Aker Kvaerner group consists of a number of separate legal entities. Aker Kvaerner is used as the common brand/trademark for most of these entities. The parent company in the group is Aker Kværner ASA.
Kvaerner Power is a pioneer in large scale fluidized bed combustion for pulp and paper industry and power producers. Approximately 200 power boilers in operation testify to the expertise in fluidized bed technology with demanding fuels. Kvaerner Power is also the leading chemical recovery equipment supplier in the world with its 300 recovery boilers and 300 evaporation unit deliveries. Kvaerner Power has designed and manufactured the world's largest recovery units and biomass-fired fluidized bed boilers. Kvaerner Power with main operations in Finland, Sweden, USA and Brazil has annual revenues of approximately EUR 350 million and it employs 1,400 people worldwide.  

This press release may include forward-looking information or statements and is subject to our disclaimer, see our web-pages www.akerkvaerner.com