Arauco to invest $70M in energy at Chilean pulp mill
SAO PAULO, June 16, 2008 (RISI) - Arauco has approved an investment of $70 million to improve the energy supply system to its 856,000 tonnes/yr of bleached softwood and hardwood kraft pulp mill, located in Nueva Aldea, Bío Bío region, Chile. The project comprises a fourth high pressure power boiler installation with a production capacity of 210 tonnes/hour of vapor which will begin to operate during the third quarter of 2009.
The investment also includes a turbo cogeneration generator with a 25 MW capacity which will begin to operate during the fourth quarter of 2009. According to Arauco, this project will be carried out within context of the Clean Development Mechanism of the Kyoto Protocol and will enable the company to generate neutral energy, replacing other energy sources of fossil origin for electric generation.
With the new installations, the Arauco pulp mill will increase its contribution to the national energy grid up to a total of 24 MW, while satisfying its own energy requirements.
Currently, Arauco owns nine energy generating facilities with an installed capacity of 538 MW, being able to inject into the Chile's Interconnected Central System -- the national energy grid -- up to 160 MW, which is equivalent to the energy needs required by cities such as Talca, Chillán and Valdivia.
