The integrated pellet manufacturing plant and power plant will directly create seven new jobs in Ilomantsi, while also having a significant indirect employment effect on the power plant’s fuel supply chain, the pellet plant’s raw material and end product transport, as well as subcontractors providing maintenance services to the power plant and pellet manufacturing plant.
Markus Hassinen, Director of Vapo’s Heat and Power business area, is very pleased to see the power plant and pellet manufacturing plant brought back online. The decision was facilitated by an amendment to the terms of the district heating business lease agreement between Vapo Oy and Ilomantsin Lämpö Oy, as well as the increase in domestic demand for pellet.
Under the previous contract terms and using the old boilers, district heating produced for Ilomantsi was unprofitable for Vapo. Without the energy requirement of the pellet plant, the relatively new power plant on the same plot of land could not be used. Heat had to be generated using two smaller boilers nearing the end of their life cycles, which use up oil at a high rate, particularly when the boilers are run at top capacity.
Under the new agreement, the price of district heating in Ilomantsi will increase gradually between now and the end of next year. However, the price of district heating for key consumer groups will remain under the Finnish national average.
Vapo will immediately begin recruiting the necessary personnel for the power plant and pellet manufacturing plant with the aim of having the integrated plant online in autumn 2014. The raw material for the pellet plant will be primarily sourced from Vapo’s sawmills in Lieksa and Nurmes. The target pellet production volume is approximately 40,000 tonnes in 2015.
