Valmet to deliver new waste-to-energy boiler at Cheng Loong’s Houli mill as part of Taiwan decarbonization push

Valmet Oyj has confirmed a new order from Cheng Loong Corporation to supply a circulating fluidized bed (CFB) boiler, full flue gas treatment system, and Valmet DNA automation platform for the Houli paper mill in Taichung, Taiwan. The Finnish industrial technology group announced the project on November 17, 2025, detailing that the 107 MW boiler will use a combination of municipal waste, industrial refuse-derived fuel, tire-derived fuel, and biomass to produce both electricity and steam for the integrated papermaking facility.

This represents a key energy transition milestone for the Taiwanese pulp and paper major. By replacing an outdated and less efficient waste-fired boiler, the new system will enable Cheng Loong Corporation to dramatically cut coal consumption at the site. The company expects to reduce its annual carbon dioxide emissions by approximately 48,000 tonnes as a result of this investment. The order will be booked in Valmet Oyj’s fourth quarter 2025 earnings.

Valmet Oyj’s delivery scope includes not just the boiler itself but also an advanced emissions control package. This will feature a pre-separator, additive injection systems, a dry scrubbing line, bag house filters, and selective catalytic reduction to meet stringent environmental standards. On the controls side, the project will be fully operated through the Valmet DNA distributed control system, which provides real-time diagnostics, high cybersecurity standards, and optimized interface design for industrial utility operators.

How does this project advance Cheng Loong Corporation’s decarbonization strategy?

Cheng Loong Corporation, one of Taiwan’s largest producers of paper and packaging materials, is increasingly aligning its operations with sustainability frameworks, including energy mix diversification and lifecycle waste reuse. The Houli mill upgrade reflects a broader push to modernize infrastructure across its network of five mills and 18 box plants spread across Taiwan, China, and Vietnam.

President Charles Chang said the company is positioning the Houli project as a flagship initiative, designed to demonstrate scalable low-carbon industrial generation through cogeneration. He emphasized that the new boiler will push the non-fossil share of the Houli mill’s energy consumption beyond 30 percent, adding that all solid waste generated on-site will be treated and reused as fuel, ensuring minimal landfill output.

This strategy is increasingly vital as Taiwan strengthens its industrial environmental targets, with regulators and export clients both demanding greener manufacturing footprints. Analysts tracking the East Asian pulp and paper sector see Cheng Loong Corporation’s investment as a model for integrated energy transition, particularly for regional players struggling with legacy fossil-based boilers.

What makes Valmet Oyj’s CFB boiler technology suitable for industrial decarbonization?

Valmet Oyj’s CFB boiler systems are known for their flexibility, enabling users to burn low-grade or variable fuels such as refuse-derived fuel and wet biomass while maintaining high combustion efficiency. The key advantage of the CFB design lies in its ability to operate at higher steam parameters than traditional grate combustion systems, which translates into superior thermal output and electricity generation rates.

This performance is particularly attractive for paper mills and other process industries with continuous heat and power demands. Valmet Oyj’s vice president for Boilers and Gasifier Solutions, Niina Ollikka, noted that the company’s in-house research and extensive field deployment history has given it a strong technical edge in handling multi-fuel installations. She emphasized that this project combines core Valmet Oyj technologies in emissions control, boiler design, and automation to deliver an integrated, high-efficiency solution.

For industrial users such as Cheng Loong Corporation, this also means reduced downtime, stable fuel procurement options, and lower long-term operating costs—critical factors when replacing fossil-fired base load systems.

How are emissions and operational controls embedded in the new system?

The emissions package installed at the Houli mill will incorporate multiple layers of pollutant removal and environmental monitoring. This includes primary particulate capture via pre-separation and bag house filtration, chemical treatment through additive injection, and advanced nitrogen oxide (NOx) control using selective catalytic reduction.

The plant will be controlled through the Valmet DNA automation platform, which is built around a distributed control architecture. This allows for plant-wide monitoring, alarm handling, and integrated safety systems tailored to complex thermal energy environments. The platform also enables continuous optimization of steam generation parameters, fuel input variation, and system-level thermal efficiency, helping Cheng Loong Corporation reach both decarbonization and production reliability goals.

Valmet Oyj positions the DNA system as a key differentiator in projects involving high-fuel-flexibility combustion and biomass energy management. The same platform is already operational in several energy and process industry sites worldwide.

Why is the Houli boiler project important to Taiwan’s wider clean energy transition?

Taiwan’s industrial sector has been under mounting pressure to reduce its reliance on imported fossil fuels while balancing competitiveness and compliance. With electricity prices rising and carbon regulations tightening, Taiwanese manufacturers are accelerating the shift toward waste-to-energy, biomass, and distributed generation models.

Cheng Loong Corporation’s decision to build what is expected to be Taiwan’s largest biomass-based cogeneration unit underscores the rising institutional and commercial support for low-carbon thermal projects. Valmet Oyj’s involvement also signals greater cross-border collaboration between Nordic technology providers and Asian manufacturers seeking turnkey energy solutions.

Beyond the immediate emissions reduction, the Houli mill upgrade could serve as a template for other heavy industrial operations in Taiwan, particularly those in cement, steel, or petrochemical segments that produce high volumes of combustible solid waste but lack modern energy recovery infrastructure.

How does this project position Valmet Oyj in Asia’s industrial energy market?

Valmet Oyj’s strategy in Asia has focused heavily on combining core combustion technologies with digitally enabled control systems. In Taiwan, the company has supported several energy and industrial infrastructure clients, and the Houli project marks one of its most advanced waste-to-energy deployments in the region to date.

While the value of the Cheng Loong Corporation order has not been disclosed, it is expected to fall within the high double-digit million-euro range, given the project scale and turnkey scope. This fits Valmet Oyj’s strategy of targeting large-scale industrial boiler replacements and sustainability-linked upgrades, particularly in markets where local waste streams can be monetized for clean energy production.

For Valmet Oyj investors, the order provides added visibility into fourth-quarter 2025 order flow, which has been closely watched due to macroeconomic uncertainties. Although the market reaction was muted at the time of announcement, analysts covering the Helsinki-listed firm see continued upside in the Asia-Pacific waste-to-energy segment as long as decarbonization incentives remain strong.

As Taiwan and other mid-income industrial economies seek to align energy security with emissions targets, Valmet Oyj’s fuel-agnostic boiler systems may become increasingly central to retrofit strategies and new-build cogeneration projects.

What are the most important takeaways from Valmet’s waste‑to‑energy project at Cheng Loong’s Houli mill?

• Valmet Oyj will deliver a 107 MW circulating fluidized bed (CFB) boiler, flue gas treatment system, and Valmet DNA automation platform to Cheng Loong Corporation’s Houli paper mill in Taiwan.

• The new boiler is designed to run on a flexible mix of fuels including municipal waste, refuse-derived fuel, tire-derived fuel, and biomass, enabling high-efficiency cogeneration of electricity and heat.

• Cheng Loong Corporation expects the project to cut annual CO2 emissions by approximately 48,000 tonnes and increase the share of non-fossil fuels at the Houli mill to over 30 percent.

• The upgrade replaces an older, less efficient waste boiler and reflects the Taiwanese manufacturer’s commitment to decarbonization, waste reuse, and industrial energy modernization.

• Valmet Oyj’s solution integrates advanced flue gas controls, pre-separation, dry scrubbing, bag filters, and SCR to meet strict emissions norms.

• Automation and plant control will be handled by the Valmet DNA system, offering real-time diagnostics, cybersecurity features, and optimization tools.

• The project positions Cheng Loong Corporation as a regional leader in low-carbon paper manufacturing and could serve as a model for future waste-to-energy transitions in Taiwan.

• Valmet Oyj has booked the order in its Q4 2025 results and sees the project as a flagship reference for multi-fuel biomass deployments in Asia.

• Analysts believe the project may encourage other Taiwanese heavy industries to invest in fuel-flexible boiler retrofits to meet regulatory and energy cost challenges.

• While the order value remains undisclosed, the project strengthens Valmet Oyj’s position in the Asia-Pacific industrial sustainability market.