INTERVIEW - Macedonian Paper Mill Hartija Ko Launches 7.0 Mln Euro Biomass Co-generation Project

The project aims to substitute the factory's existing fuel oil-fed boiler with a new co-generation unit that will produce steam and electricity by burning agricultural residue and wood waste, Markovic told SeeNews in a written interview.

The co-generation plant, to become operational by July 2010, will produce over 17 gigawatt hours (GWh) of electricity per year that will cover the needs of the paper mill. The company will sell the remainder to Macedonia's power distribution grid.

Eurecna's Renewable Energy Unit is operating as an advisor for a wide range of renewable energy technologies. Besides in Italy and Macedonia, Eurecna is involved in renewable energy projects in Montenegro, Romania and Morocco, the company said on its website.

Markovic said the municipality of Kocani, in eastern Macedonia, will supply agricultural residue for the co-generation plant.

The municipality said on its website that the Kocani region can provide 12,300 tonnes of wheat straw, 8,400 tonnes of barley straw and 7,900 tonnes of rice straw (estimated for prudential average of 3 tonnes/ha per year) from over 10,000 hectares of arable land.

Kocani's local government is interested in taking part in the project because the co-generation plant will create new jobs in the region and an opportunity for many companies to sell their agricultural residue, Markovic said.

The economy of the Kocani valley is closely related to agriculture thanks to the region's favourable climate and rich alluvial soil. Rice, cultivated on an area of over 3,500 ha, is the dominant crop in the region.

The biomass-fed co-generation plant will also reduce Hartija Ko’s carbon dioxide emissions by 29,705 tonnes per year, its owner said. He added, though, that the factory’s greenhouse gas emissions currently are not exceeding permitted levels.

Hartija Ko is able to produce 14,400 tonnes of offset paper (55-150 g/sq m) and 15,000 tones of packaging paper (112-150 g/sq m). Installing a machine for corrugated cardboard production with capacity of 60 tonnes per day is underway, while a slotter machine for making cardboard boxes will be provided soon, Markovic said.

Hartija Ko sells 20% of its output in Macedonia and exports the remainder to Serbia, Bulgaria, Kosovo, Albania, Romania and Greece. Last year, when the paper mill operated at reduced capacity, its exports totalled 4,000 tonnes. The company's aim, supported by its high-quality products, is to become a regional leader in paper and cardboard production equal to European peers, said Markovic.

($=0.6780 euro)