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Paper products giant to invest $75m in new cogen plant

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Global paper products giant Kimberly-Clark is set to invest $75m in a new cogeneration plant at its pulp and paper mill in Mobile in the US state of Alabama.

The plant is expected to come online in 2019.

An existing facility supplies up to 61 MW of cogenerated steam and electricity for use in Kimberly-Clark's mill operations. This plant is owned and operated by Mobile Energy under a 15-year agreement which expires in April 2019.   

The decision to build a new plant came after “extensive discussions” with MESC Capital, which holds a 50% stake in Mobile Energy.

As for the existing facility, "We are engaged in identifying other potential customers for MESC's output or alternative uses for our facility,” MESC said in a statement.