Smurfit Kappa invests US$100M in Colombian biomass boiler to cut South American GHG

14 Oct 2022 --- Smurfit Kappa has invested US$100 million into a biomass boiler powered by organic residue for its paper mill in Yumbo, Colombia. The boiler is replacing fossil fuels with waste from the company’s paper-making process to generate cleaner energy. 

Organic waste for the boiler will consist of pine and eucalyptus bark from the company’s own forestry plantations, waste from its wood treatment plant and ashes and sludge generated during the paper-manufacturing process. 

“This investment reinforces our commitment to Colombia, a strategic growth market, and [environmental] sustainability targets. The commissioning of this state-of-the-art biomass boiler is a further material step toward our 2030 and net zero emissions targets and to protecting the environment and creating a greener world,” says Laurent Sellier, CEO of Smurfit Kappa in the Americas. 

Smurfit Kappa has been expanding its operations into South America over recent years, setting up numerous production plants in the region. The company states this investment is representative of its efforts to combat greenhouse gas emissions in Colombia and reduce its environmental impacts. 

Smurfit Kappa uses its own waste to power a new biomass boiler in Yumbo,  Colombia, pictured above. Emissions impact
Smurfit Kappa expects the mill to significantly reduce the site’s fossil fuel usage and create cost savings. The company aims to reduce its global Scope 1 and Scope 2 CO2 emissions by approximately 6%.

Last reported in 2016, CO2 emissions per capita in Colombia were equivalent to 1.61 metric tons per person based on the population of 48.1 million, according to a report by the International Energy Agency. 

“The construction of this boiler reflects the circularity that is the foundation of our sustainability strategy and runs through all of our operations as we are finding another use for our own waste,” says Alvaro J. Henao, CEO of Smurfit Kappa Colombia. 

“It is also a very important project for the region, as it will contribute to expanding the use of renewable energies and is a timely response to the increased global demand for paper.” 

The company has successfully implemented biomass boilers at several other locations, including the Nervion, Piteå and Sangüesa paper mills in Europe. The new boiler is expected to be operational by the end of 2024. 

Past commitments 
Earlier this month, the company published its first Green Bond Allocation and Impact Report, demonstrating that its assets will promote a circular economy and manage natural resources in environmentally sustainable ways. 

Smurfit Kappa has been focusing on Latin America, recently acquiring the Brazilian packaging plant, PaperBoxm and previously buying Argencraft in Buenos Aires, Argentina, Cartonbox in Mexico, Cartones del Pacifico in Peru and more, all between 2021 and 2022.

By Sabine Waldeck