In its annual report Norske Skog has announced having initiated a number of liquidity generating initiatives including the divestment of the group’s Tasman geothermal power. The group has obtain commitments for interim financing of up to EUR 20 million ($22.4 million) in connection with the sale of the geothermal plant. This is financing to help a company acquire the plant from Norske Skog.
Norske Skog (english: Norwegian Forest Industries), is a Norwegian pulp and paper company, manufacturing lightweight, coated and uncoated newsprint and magazine paper. With international operations and mills in Norway, the Netherlands, Austria, France, Czech Republic, France, Chilke, Brazil, Australia, China, and Thailand, it also operates a mill in Kawerau, New Zealand. It is today the world’s largest producer of newspaper and magazine paper.
The Tasman Mill near Kawerau, NZ, is one of the largest employers in the region and has been in operation since 1952. The site for the plant was chosen because of the ready availability of geothermal steam as power source.
In 1966 the company built a 10 MW plant and today there are six plants operating in the region, with a total installed capacity of 143 MW.
Norske Skog – at the end of the year 2015 – had two plants in Kawerau, the 21 MW Topp 1 geothermal plant and the Tasman BP 8 MW plant, with a total capacity of 29 MW.
The announcement does not make it clear what plant has been or will be sold, or if this applies to both plants. We will follow up and report when we find out.