Mar 30, 2010. /Lesprom Network/. VIDA Paper AB and Lessebo Municipality in Sweden has signed a deal regarding distribution of heat to the Lessebo community. Lessebo Municipality will successively invest in the distribution network. In the first stage, investments will be made to secure distribution of 50% of the total projected volume, with start from autumn 2010, company said in a statement received by Lesprom Network. The distribution network is projected to reach its full expanse in the beginning of 2013. For this first stage, VIDA Paper AB will invest in; heat exchanger, accumulation tanks and other support techniques at a value of approximately SEK 15-20 million ($2-2.8 million). In Stage two, when the network will reach its fullest expanse, further investments are needed to be able to cover the demand from the community. VIDA Paper AB will then have to increase its heat producing capacities by investing in a new bio-fuel heater, either based on hot water or steam. The total worth of such an investment would be between SEK 25-40 million ($3.5-5.5 million). If the whole project is realized it would mean a total investment of approximately SEK 80 million ($11 million) for VIDA Paper AB. “This is another step in line with the strategy of joint paper and energy production, that was the basis for the purchase of Lessebo Mill and this will secure the future of VIDA Paper AB further,” says VIDA group’s CEO Santhe Dahl.