Forest-based value creation in Norway 81
Skogn in 1966. Over the years Norske Skog put all its efforts into becoming
the world’s leading paper producer, acquiring many foreign pulp and paper
mills globally and consequently losing a great deal of its economic power as a
result of a globally diminished demand for paper. Several of the pulp and
paper plants had to be closed, but the one in Skogn has remained open in
Norway, with three paper machines in operation.
While the mother company has declared bankruptcy, both Norske Skog
Skogn and the other Norwegian plant, Norske Skog Saugbrugs AS in Halden,
which specialises in magazine paper, are still in business; indeed they are
earning steady incomes and do not fear for the future because of increased
demand. While global demand for newspaper paper has declined, the European production capacity has nosedived still more rapidly, leaving a potentially large market share for the paper produced in Skogn. Norske Skog
Skogn owns a large area of land in Fiborgtangen where the necessary infrastructure is already in place, such as quays, railways, roads, access to clean
water and renewable energy. This allows direct export by ship to the United
Kingdom and the Netherlands. Norske Skog uses bark as an input for thermal
energy in the production of newsprint paper and the plant recycles newspaper
paper in the production of its newsprint paper. Finally, the plant produces
waste water, and this is the main input for valorisation as biogas.
Norske Skog Skogn has established cooperation with Biokraft AS, a
company launched in 2009 and specialising in producing biogas from residues
in the Norwegian aquaculture industry. The company is mainly owned by
two shareholders: Scandinavian Biogas Fuels (50%) and Trønderenergi (43%).
Biokraft had earlier experience of producing bio- oil from aquaculture residues. Norske Skog Skogn and Biokraft planned to exploit rest resources from
pulp and paper production together with the rest resources from salmon
aquaculture (category 2) in order to produce biogas and upgrade it to liquefied biogas (LBG). Category 2 rest resources include all sick and clinically
dead fish.
Biokraft bought a part of the industrial area at Fiborgtangen close to the
paper plant and started building a plant in 2015, opening it in June 2018.
Regarding infrastructure, it should be mentioned that Biokraft also has access
to the quays, where it takes deliveries of aquaculture residuals by ship. The
plant’s co- location with Norske Skog Skogn allows the setting up of direct
pipelines for the waste water running from the pulp and paper plant to
Biokraft.
The main source of success for the biogas plant was the entrepreneurial
spirit of both companies, overcoming administrative barriers at the county
level concerning public procurement of LBG. A major problem for the
project was that Biokraft had to buy all raw materials (the aquaculture residues) in advance and sell the LBG before the project could receive any
financing. The cooperation with AGA was key to getting the funding for the
plant: AGA bought all Biokraft’s LBG for the next 10 years, ensuring the
success of the project. AGA is a Swedish company specialising in industrial
Skogn in 1966. Over the years Norske Skog put all its efforts into becoming
the world’s leading paper producer, acquiring many foreign pulp and paper
mills globally and consequently losing a great deal of its economic power as a
result of a globally diminished demand for paper. Several of the pulp and
paper plants had to be closed, but the one in Skogn has remained open in
Norway, with three paper machines in operation.
While the mother company has declared bankruptcy, both Norske Skog
Skogn and the other Norwegian plant, Norske Skog Saugbrugs AS in Halden,
which specialises in magazine paper, are still in business; indeed they are
earning steady incomes and do not fear for the future because of increased
demand. While global demand for newspaper paper has declined, the European production capacity has nosedived still more rapidly, leaving a potentially large market share for the paper produced in Skogn. Norske Skog
Skogn owns a large area of land in Fiborgtangen where the necessary infrastructure is already in place, such as quays, railways, roads, access to clean
water and renewable energy. This allows direct export by ship to the United
Kingdom and the Netherlands. Norske Skog uses bark as an input for thermal
energy in the production of newsprint paper and the plant recycles newspaper
paper in the production of its newsprint paper. Finally, the plant produces
waste water, and this is the main input for valorisation as biogas.
Norske Skog Skogn has established cooperation with Biokraft AS, a
company launched in 2009 and specialising in producing biogas from residues
in the Norwegian aquaculture industry. The company is mainly owned by
two shareholders: Scandinavian Biogas Fuels (50%) and Trønderenergi (43%).
Biokraft had earlier experience of producing bio- oil from aquaculture residues. Norske Skog Skogn and Biokraft planned to exploit rest resources from
pulp and paper production together with the rest resources from salmon
aquaculture (category 2) in order to produce biogas and upgrade it to liquefied biogas (LBG). Category 2 rest resources include all sick and clinically
dead fish.
Biokraft bought a part of the industrial area at Fiborgtangen close to the
paper plant and started building a plant in 2015, opening it in June 2018.
Regarding infrastructure, it should be mentioned that Biokraft also has access
to the quays, where it takes deliveries of aquaculture residuals by ship. The
plant’s co- location with Norske Skog Skogn allows the setting up of direct
pipelines for the waste water running from the pulp and paper plant to
Biokraft.
The main source of success for the biogas plant was the entrepreneurial
spirit of both companies, overcoming administrative barriers at the county
level concerning public procurement of LBG. A major problem for the
project was that Biokraft had to buy all raw materials (the aquaculture residues) in advance and sell the LBG before the project could receive any
financing. The cooperation with AGA was key to getting the funding for the
plant: AGA bought all Biokraft’s LBG for the next 10 years, ensuring the
success of the project. AGA is a Swedish company specialising in industrial