Vattenfall to supply electricity to Stora Enso in Germany in two-year deal

BERLIN, July 5, 2011 (Press Release) - Earlier this year, Vattenfall landed a major order from Stora Enso in Sweden. The paper, packaging and wood products company has now also signed a deal for one of its German plants, which is seen as an important breakthrough.

Vattenfall has signed a new electricity supply agreement with one of Stora Enso's business units in Germany. Initially it comprises a two-year agreement on electricity supply and balance management, covering a total of 1 TWh. Balance management means that Vattenfall levels out the differences between Stora Enso's forecast and actual electricity usage. Earlier this year, Vattenfall landed a giant 11-year contract for a total of 7 TWh for Stora Enso's facilities in Sweden.

"It feels like a breakthrough that we because of a strong Nordic business relation now have succeeded in signing a contract also in Germany. We work with a number of large groups based in both Scandinavia and the continent, and we now hope to do more cross-border business," says Matts Wesslén, Head of BU Mega within Distribution & Sales, BtB*.

"For Stora Enso this means a transition from a self-service agreement to a contract in which we play an active role on the electricity exchange. A structured purchasing procedure on the EPEX spot market via Vattenfall is a further development and optimization of Stora Enso's electricity acquisition in Germany," says Edmund Voigt, Manager Energy Continental Europe.

*Vattenfall's Business Unit Mega, in Distribution & Sales BtB, is in charge of relations with the electricity intensive industry in Europe.