Energy Agreement Supports Strong Future for Norske

Hydro Tasmania has reached an energy supply agreement with Norske Skog that will support their continued operation in Tasmania.

The new agreement locks in energy supply until the end of 2030 for one of Tasmania’s largest industrial employers.

Hydro Tasmania CEO, Steve Davy, said he was pleased to have negotiated an agreement that’s good for Tasmania.

“The contract is a significant achievement for all parties and extends the 78-year partnership between our organisations.

“This agreement provides ongoing electricity supply for one of our major industrial customers, which helps keep jobs in the state, while also being commercially sound for Hydro Tasmania – it’s a win win,” Mr Davy said.

Dale Richards, General Manager, Norske Skog Boyer Mill welcomed the signing of the contract.

“The production of newsprint and publication papers is energy intensive and trade exposed, therefore having certainty over such a key component of our business is very important.

“Today’s signing will be welcome news for our employees, our contractors and the many people and organisations that supply the mill with goods and services each year.

“Market conditions for the production of newsprint and publication grades remain highly competitive and we must continually improve across all areas of our business in order to remain viable into the future. Our job in this regard is never done, however today’s announcement is an important step in securing a strong future for the Boyer Mill”, Mr Richards said.

Norske Skog’s Boyer Mill produces around 280 000 tonnes of newsprint and publication paper each year and directly employees 270 people.

Source: RenewEconomy


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