Paper and Power: E.ON awarded on-site generation contract for DS Smith

  • Combined heat and power facility for DS Smith will save c36,000 tonnes of carbon
  • Long-standing site relationship extended for a further 20 years

DS Smith, the leading provider of sustainable packaging solutions, and energy provider E.ON have today announced the signing of a major agreement to construct a state-of-the-art combined heat and power (CHP) facility at Kemsley Paper Mill in Kent.

The facility will replace the existing CHP and extend E.ON’s partnership at the site with DS Smith for the next 20 years. The facility has been specifically designed to set the standards in efficiency, sustainability and reliability. The new plant will enable a carbon reduction of 36,000 tonnes per year. This is the equivalent of 30,000 medium-sized cars driving over 6,000 miles1 a year.

Once complete, it will have an electrical capacity of c75MW, generating steam and power for DS Smith’s production processes at its flagship Kemsley Mill site. With 830kT of paper manufactured at the mill every year, the partnership will further improve resource efficiencies and contribute to DS Smith’s corporate goal of reducing CO2 emissions by 30% by 2030.

The programme will be one of E.ON’s largest customer solutions projects in more than a decade. The energy company will finance, build and operate the CHP. The two-year construction phase of the CHP plant is due to start this year. The facility is planned for commission in 2021.

Colin McIntyre, CEO for DS Smith Paper and Recycling Divisions, commented: “Embracing world-leading innovation to minimise our environmental impact is a key corporate goal for DS Smith. Partnering with E.ON to develop a state-of-the-art solution to meet our long-term energy requirements is a vital element to achieve this ambition and we expect to see a 36,000 tonnes per year carbon reduction from improved efficiency at the new facility.

“We are looking forward to construction beginning later this year as we are delighted with the benefits the new plant will bring to our business, as well as the opportunity this gives us to continue our strategic partnership with E.ON.”

Michael Lewis, E.ON UK CEO, added: “Energy security, lower costs, and greater efficiency are key to a sustainable future for manufacturing sites and we are proud our bespoke solutions will contribute to our ongoing relationship with DS Smith and future success at the Kemsley site. This new plant is an excellent example of the new energy world and it is proof of E.ON’s capability to deliver innovative and bespoke solutions demanded by our business customers.

“In upgrading and optimising energy operations on site we can ensure DS Smith has a reliable and efficient energy supply that allows the business to get on with what they do best – providing quality and more sustainable packaging for its customers and, ultimately, consumers all around the country.”

For more information about DS Smith, visit www.dssmith.com. For more information about E.ON, visit https://www.eonenergy.com/for-your-business

Ends

1 Based on an average family car emitting 195g CO2 per mile or 120g per kilometre.

Notes to Editors

About DS Smith

DS Smith is a leading provider of sustainable packaging, supported by recycling and papermaking operations. Headquartered in London and a member of the FTSE 100, DS Smith focuses on creating innovative sustainable packaging solutions in 37 countries employing around 32,000 people. Using the combined expertise of its four divisions – Packaging, Recycling, Paper, and Plastics – DS Smith works with customers to deliver solutions that reduce complexity and deliver results throughout the supply chain. Its history can be traced back to the box-making businesses started in the 1940s by the Smith family.

About E.ON

E.ON is an international private energy company, which focuses on energy networks, customer solutions, and renewable energies. As one of Europe's largest energy companies, E.ON develops and sells products and solutions for private, commercial and industrial customers. In fiscal 2017, 43,000 employees generated sales of 38 billion euros. Around 32 million customers purchase electricity, gas, digital products or solutions for electric mobility and energy efficiency from E.ON. The company is headquartered in Essen, Germany. For more information, please visit www.eon.com.