Agreement with Norske Skog Boyer Mill

29 February 2016

Hydro Tasmania has reached an agreement with Norske Skog that will help Tasmania manage the current unprecedented low water storage situation, due to low inflows and the current Basslink outage.

Norske Skog will voluntarily reduce load at its Boyer Mill for one week, starting from the middle of next week. The reduction will involve the closure of one of the mill’s two paper machines and associated pulp mill. These actions will have no effect on the Boyer workforce.

Norske Skog Boyer general manager Rod Bender said the company was pleased to be able to assist during a challenging period for the state.

Hydro Tasmania has a long-standing relationship with Norske Skog, which celebrated its 75th anniversary last week.

The voluntary reduction of 43 MW at Boyer follows reductions of approximately 30 MW by TEMCO since January, and 32-40 MW by Bell Bay Aluminium since February.

Hydro Tasmania and the State Government continue to work on implementing other aspects of the Energy Supply Plan, including obtaining up to 200 megawatts of temporary diesel generation, and securing additional gas capacity at the Tamar Valley Power Station.

“The Energy Supply Plan outlines how we will be able to meet all Tasmanian energy demand without Basslink in operation, even in the event of a cool, dry May, and with allowance for an additional adverse event that would have an impact on energy generation, such as loss of a major power station,” said Andrew Catchpole, Acting CEO of Hydro Tasmania.

“Generation from gas and temporary diesel, along with voluntary load reductions by large consumers, will be well in excess of the import capacity of Basslink.

“This will ensure Tasmanian demand can be met, even with a prolonged Basslink outage.”

Total energy in storage at 29 February is 16.1 per cent.

Ends.

Released by Samantha Meyer (03) 6230 5746

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