The 75MW efficient facility will replace the existing CHP plant under a partnership with E.ON and generate steam and power for its production processes at the Kemsley Mill site, which has an annual production of 830,000 tonnes.
It is expected to enable a carbon reduction of 36,000 tonnes a year – equivalent to taking 30,000 cars off the road – and contribute to DS Smith’s goal of reducing emissions by 30% by 2030.
The facility is scheduled to be commissioned in 2021.
Colin McIntyre, CEO for DS Smith Paper and Recycling Divisions said: “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.”