Stora Enso's Energy Services function is responsible for procuring energy, including fossil fuels, and hedging with regard to energy prices, as well as the trading of green certificates and the monitoring of emission trading trends. The team also ensures that our energy efficiency strategy is duly implemented.
The Energy Services function is headed by the Vice President, Energy Services. Its energy efficiency manager is responsible for coordinating and steering our energy efficiency work and promoting the spread of related information. Stora Enso's internal team of energy efficiency specialists help our mills to find and exploit opportunities to save energy.
While the Energy Services function plays an important role by helping mills find ways to optimise their energy use, the mills themselves usually have the best understanding of their processes and the technological requirements for their products. Our mills are therefore ultimately responsible for optimising and rethinking their existing processes so as to maximise their own energy efficiency. The energy efficiency work done at our mills is guided by our internal tools and certified environmental and energy management systems. For a comprehensive list of our certificates see www.storaenso.com/certificates.
In 2013 the Group's Internal Audit function evaluated the effectiveness and efficiency of Stora Enso's energy management. The resulting audit report concluded that our energy organisation is focused and well anchored in our business operations. Our energy organisation was also commended for cultivating a
performance-based culture and adopting an open approach to communications. The report recommended that the sharing of knowhow and best practices should be improved.
In 2013 we conducted basic energy audits at eleven mills and follow-up audits at nine mills.
To further improve our energy efficiency we have created a network of forums for the largest production units among our Nordic and Continental European pulp, paper and board mills. The fourth forum for our chemical pulp production was introduced in 2013. These forums work together systematically to share best practices and to find ways to improve energy efficiency with regard to targets set for each business area.
Energy efficiency fund
Another cornerstone of our energy work is our centralised energy efficiency investment fund. In 2013, this fund amounted to 10 million euros available for allocation to energy saving investments on an annual basis. The fund was set up in 2008 to support our mills' energy efficiency projects. It was used to support 38 projects during 2013. These projects should generate total energy reductions amounting to at least 223 000 MWh per year (92 000 MWh electricity and 131 000 MWh heat) when in full effect. These figures are equivalent to 0.6% of our annual electricity consumption and 0.4% of our annual heat consumption.
Major investments to improve energy efficiency
In 2013 Stora Enso decided to invest EUR 13.5 million to replace oil with dried sawdust at our Enocell Mill. This investment will enable us to replace over 85% of the fossil fuels used at Enocell with biomass. This is expected to reduce the mill's annual fossil carbon dioxide emissions by 30 000 tonnes and energy costs by EUR 5 million. This project is due to be finalised by the end of 2014.
In 2013 Stora Enso also decided to invest EUR 32 million in building a state-of-the-art biorefinery at Sunila Mill in Finland. The biorefinery will reduce the mill's CO2 emissions by replacing up to 90% of the natural gas used at the mill with lignin extracted from black liquor.