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Sawdust Worth Millions in Innovative Exchange

Swedish utility Graninge Kalmar Energi has signed a $29 million agreement to buy sawdust for power production from parquet and flooring producer AB Gustaf Kahr. The deal revolves around 50,000–60,000 tons of sawdust per year.

Swedish utility Graninge Kalmar Energi has signed a $29 million agreement to buy sawdust for power production from parquet and flooring producer AB Gustaf Kahr. The deal revolves around 50,000–60,000 tons of sawdust per year.

The waste produced in flooring manufacturing is used as fuel to generate heating in Kalmar. Kährs also buys its entire electricity requirement from Graninge in Kalmar.

Graninge Kalmar Energi supplies heat to more than 11,000 apartments and nearly 2,000 single-family homes, as well as businesses, schools and industries. Seventy-five percent of the heat is produced with biomass fuel, most of which comes from Kährs’ flooring manufacturing in Nybro and Blomstermåla.

The agreement, set to run through 2008, offers advantages for both Kährs and Graninge Kalmar Energi. Kährs is guaranteed a market for its waste products while Graninge Kalmar Energi is assured delivery of biomass fuel and can thus safeguard its future production of environmentally friendly district heating.

“The collaboration with Graninge Kalmar Energi is important for our future expansion,” said Michael Bohlin, managing director of Kährs.

“The more flooring we manufacture, the more waste is produced in the form of wood powder, chips and bark. Being able to put this waste to use locally is good for both us and the region,” Bohlin said.

According to Ulf Gunnarsson, managing director of Graninge Kalmar Energi AB, the collaboration is beneficial for the region:

“Most of our biomass fuel requirement is supplied by Kährs. The advantage of biomass fuels is that they don’t contribute to the global greenhouse effect,” Gunnarsson said.

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