OPCON: Order Worth SEK 35 Million for New Bio Boiler That Will Replace Oil-Based Plant

Regulatory News:

Saxlund, a subsidiary of Opcon (STO:OPCO), the energy and environmental technology Group, has received an order for an advanced bioenergy plant at Skåpafors mill, introducing biomass as a fuel instead of oil and electricity. The customer is Rexcell Tissue and Airlaid AB, a subsidiary of Duni. The order is worth around SEK 35 million for Saxlund. Delivery is planned for 2009/2010.

The plant will have a joint combustion system which will produce 9 MW of process steam. This means that in addition to replacing oil and electricity as fuel with biomass, the system will enable waste from the mill to be burnt and energy extracted from it. When the plant is taken into operation Rexcell expects to cut carbon emissions significantly. "This is the first plant of its kind that Saxlund is selling. One of the new features is that we are integrating the possibility for the customer to use the boiler to burn their own biological waste. This makes Rexcell and Duni groundbreakers and I am sure we will see many companies following after. This is a profitable investment with a short payback period. It’s good for the environment and reduces the customer’s climate impact considerably. They will also stop having the extra expense of landfill for their waste,” says Tomas Wendt, head of bioenergy plants at Saxlund.

"The acquisition of Saxlund has given us an even stronger base on the growing bioenergy market where Opcon combines experience and innovation in energy and environmental technology. This deal is another example of how we strategically are adding important applications for our customers and offering complete system solutions ” says Rolf Hasselström, President and CEO of Opcon AB.

"The bio boiler will reduce our impact on the environment while we reduce our energy costs” says Patrik Söderstjerna CEO of Rexcell Tissue and Airlaid AB.

Saxlund is a part of Opcon’s expanding Renewable Energy business area and its focus on Waste into Value and Bioenergy. Saxlund currently has a very strong position not least in the Nordic region, where the company has done business for over 50 years. Saxlund operates with subsidiaries on the fast-growing German and UK markets, which feature high electricity prices, a rising environmental awareness, and subsidies for renewable energy production. Saxlund is also represented in other countries via 25 partners. In addition to activities within bioenergy, Saxlund supplies equipment for sludge, slag, ash and waste handling.

About Opcon

Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy. Opcon has activities in Sweden, China, Germany, the UK and Denmark. There are around 360 employees. The company’s shares are listed on OMX Nordic Exchange.

The Group comprises three business areas:

Renewable Energy focuses on generating electricity from waste heat, bioenergy, systems for handling natural gas, industrial cooling, recycling of heat, drying processes, treatment of flue gases, air systems for fuel cells and measurement and monitoring of processes. The business area comprises the following subsidiaries: Svenska Rotor Maskiner (SRM), Opcon Energy Systems (OES), REF Technology (REF Tech), Svensk Rökgasenergi (SRE), Saxlund, Värmlands Montageteknik, and the brands Opcon Autorotor and Mitec Instrument.

Engine Efficiency focuses on ignition systems for combustion engines including ethanol, natural gas and biogas engines. The business area comprises the following subsidiaries: SEM, Opcon Technology Suzhou and Laminova Production.

Mobility Products focuses on technology for positioning, motion and regulation for electrical vehicles and electrical wheelchairs. The business area comprises the REAC and Balle A/S subsidiaries.

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