In 2004 Stora Enso’s environmental investments and costs amounted to a total of EUR 261 million, compared to EUR 254 million in 2003. Total environmental investments amounted to EUR 87 million, while environmental costs totalled EUR 174 million.
Spending on environmental costs includes capital expenditure as well as operating and maintenance costs, but excludes interest and depreciation. The main cost categories, which cover approximately 70% of the total costs, are taxes, fees, refunds and permit related costs EUR 51 million (compared to EUR 39 million in 2003), repair and maintenance EUR 39 million (EUR 41 million), and chemicals and materials EUR 33 million (EUR 31 million).
Significant investments
Skoghall Mill is currently building a new recovery boiler and a new evaporation plant, while another boiler is due to be converted from oil to bio-fuels in 2006. These projects will improve energy efficiency and reduce emissions of fossil carbon dioxide, sulphur dioxide, NOx and COD in effluent. These investments amounted to EUR 56 million during 2004.
Varkaus Mill invested EUR 23 million during 2004 in the thermo-mechanical pulp (TMP) line and chip handling system in order to increase the capacity of the TMP plant. These measures are expected to significantly reduce the use of fossil fuels. The total investment will amount to EUR 37 million.
Kvarnsveden Mill has started up a new boiler to facilitate the increased use of bio-fuels and reduce emissions of SO2 and NOx. The related investment amounted to EUR 20 million during 2004.
Kabel Mill is investing a total sum of EUR 4.5 million in an anaerobic waste water treatment plant, with EUR 1.7 invested during 2004. The treatment plant is due to start up in April 2005. In the first stage 50% of the waste will be treated. This process produces biogas, which will be used in a bio-fuel power plant. The project also includes the recovery of wood fibre in the groundwood plant, with expected fibre savings up to 3.5 tonnes per day.
Norrsundet Pulp Mill has invested EUR 3.9 million during 2004 in an electrostatic filter at one of the mill's recovery boilers. This has led to a reduction of 50% in particulate emissions. The total investment on this project amounts to EUR 4.5 million.
Oulu Mill has invested EUR 2.5 million during 2004 in a system for collecting weak maladorous gases from the fibre line. These gases can then be incinerated in a recovery boiler. The total investment on this project amounts to EUR 3.3 million.
In a joint venture, Kabel Mill and the local energy supplier have built a new bio-fuel power plant, which started operating in December 2004. The electricity produced will be used in the municipal grid and the steam will be used by the mill. Kabel Mill will supply the power plant with bio-fuels including sawdust and bark. The new power plant will save fossil carbon dioxide emissions amounting to 160 000 tonnes compared to a power plant of similar size using fossil fuels.
Environmental liabilities
Estimates indicate that a total of EUR 45 million will be required to cover future corporate environmental liabilities. This includes remediation projects such as decommissioning activities at the Falun Mine, the clean-up of mercury contamination at the former chloralkali plant in Skoghall and the final safe disposal of mercury at Skutskär harbour. In 2004, Stora Enso in Finland cleaned up contaminated soil areas in Rautjärvi and Kerava, and delivered contaminated soil from Uimaharju Sawmill to a hazardous waste landfill. The remediation work at the old Pateniemi Sawmill area will start when the project receives an environmental permit.
There are currently no active or pending legal claims concerning environmental issues which could have a material adverse effect on Stora Enso’s financial position.
