Ten-year power deal for Boyer

Energy Minister Guy Barnett MHA, right, at Norske Skog Boyer.

HYDRO Tasmania and Norske Skog have agreed on an energy supply agreement for the Boyer paper mill for the next decade.

Hydro Tasmania chief executive Steve Davy said the new agreement locked-in Boyer’s energy supply until the end of 2030. He said the agreement with one of Tasmania’s largest industrial employers was good for the state.

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

“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,” he said.

The signing of the new contract was also welcomed by Boyer Mill general manager Dale Richards. “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,” he said.

“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. Following the closure of Norkse Skog’s paper mill at Albury – which may reopen as a cardboard plant – Boyer is once again the sole producer of newsprint in Australia.

“We are pleased to announce Hydro Tasmania and Norske Skog have reached an agreement on energy supply that helps to secure Norske Skog’s operation at the Boyer site,” Energy Minister Guy Barnett said yesterday.

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