MM Kotkamills and Kotka Energy Ltd. sign a waste heat recovery agreement
MM Kotkamills and Kotka Energy Ltd., an energy group which offers diverse energy services and products, will enter into an important collaboration by using waste heat from the mill processes of MM Kotkamills to produce district heat in a recovery plant built by Kotka Energy Ltd. The recovery and use of waste heat will significantly reduce carbon dioxide emissions from district heating and increase energy efficiency.
”It is important for us to promote the circular economy by utilising the by-products of our mill’s production. With this cooperation project, the waste heat from our mill will contribute to providing carbon-neutral district heating to the people of Kotka. We want to play our part in producing heat in a responsible way, while at the same time improving the energy efficiency of our own mill. It is great to be one of the first forest industry mill integrators, where low-temperature waste heat is recovered for district heating,” says Managing Director of MM Kotkamills, Päivi Suutari.
Background:
Kotka Energy Ltd. is investing and building a heat recovery plant which will utilize low-temperature waste heat from the processes of MM Kotkamills. Using industrial-scale heat pumps, the heat recovery plant converts the low-temperature waste heat from the treated waste water into district heating.
Key highlights:
The heat recovery plant will have a production capacity of 10 MW and an annual district heat production capacity of 65,000-70,000 MWh, which represents up to 15-20% of the total district heat demand of the city of Kotka. Kotka Energy will use waste heat to replace district heating produced by incineration, reducing the use of peat, wood fuels, natural gas and oil. The use of peat and wood fuel alone will be reduced by more than 600 truckloads per year. In addition, the project is estimated to reduce carbon dioxide emissions by approximately 8,621 tonnes per year. The project will play an important role in achieving the carbon neutrality goal of Kotka Energy and the City of Kotka.
The total investment for the project is approximately 13 million euros. The investment is a practical demonstration of Kotka Energy’s commitment to carbon-neutral district heating, emission reduction and energy efficiency. The Ministry of Economic Affairs and Employment of Finland has recognised the potential of the project and awarded Kotka Energy an energy investment grant of approximately EUR 1.8 million through the European Union’s Recovery and Resilience Facility.
MM Group has set an ambitious target to reduce carbon dioxide emissions by 2031. In order to achieve this target, the Group is taking measures mainly in the areas of energy efficiency and renewable energy. The cooperation project with Kotka Energy is one of Kotkamills’ efficiency development projects.
Project status:
A contract for the heat recovery plant has been signed with the supplier. The delivery includes the heat pump plant with process equipment, heat pumps and the plant building, which is expected to be completed within 12 months. The heat recovery plant, with an initial area of 700 m2, will be located at the mill site of MM Kotkamills.
Project schedule:
The basic and project design phases have been carried out between May 2023 and January 2024. Kotka Energy’s Board of Directors made an investment decision on January 29, 2024. Project implementation is planned to take place between May 2024 and November 2025. The implementation includes acquisitions, construction works, pipeline installations, electrical connections and commissioning phases.
”Through this significant cooperation, Kotka Energy Ltd. and MM Kotkamills Oy are setting a model for sustainable energy use that replaces burning, accelerating economic growth and at the same time protecting the environment for future generations,” says Sami Markkanen, Production Manager Kotka Energy Ltd.
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Kotka Energy Ltd.
Kotka Energy Ltd. is an energy group which offers diverse energy services and products. The main products are district heating, steam, electricity and natural gas. The subsidiary KotkaTec produces electric car charging services, solar panels and other smart electrical services throughout Finland.
