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Arctic Paper signs contract for energy storage and system services

Arctic Paper has signed a fifteen-year agreement with S.E.R. Sverige to cooperate regarding energy storage and grid system services. The mills in Grycksbo and Munkedal will provide space and grid connections for battery installations. The contribution to EBITDA is estimated to SEK 10-30 million annually for the first two years of operation starting 2025.

The two Swedish mills, Arctic Paper Grycksbo AB, and Arctic Paper Munkedals AB have entered into agreements with S.E.R. Sverige AB for the installation and connection to the power grid of battery energy storage systems with a total capacity of 24 MW, as well as for providing system services to the Swedish transmission system operator (TSO).

"In line with our strategy to invest in energy, we are happy to enter a cooperation with S.E.R Sverige. Being large energy consumers with high-capacity connections, our mills have a significant advantage in terms of managing the power grid. An additional value is the gathering of experience from the Swedish market, so that Arctic Paper also can provide grid system services in Poland," says Michał Jarczyński, CEO of Arctic Paper Group.

The energy market is developing dynamically with new generation sources, greater need for energy management and storage, and a growing market for the provision of system services for power system operators. For five years, the Grycksbo paper mill has been providing system services to the Swedish TSO Svenska Kraftnät in the field of demand flexibility and frequency regulation in the grid.

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