PALM power plant innovation programme: On the way to CO₂-neutral paper production

At its three sites in Germany, PALM operates gas-fired power plants according to the CHP (combined heat and power) principle. Since 2021, these power plants have been modernised and the existing gas turbines have been replaced by the most up-to-date gas turbine type on offer from Siemens, namely the SGT-800 which boasts an energy efficiency of more than 90%. It can already operate with a fuel intake of up to 75% hydrogen, which is set to rise to 100% in the future. The use of ‘green’ hydrogen thus makes CO2-neutral paper production possible. 

The state-of-the-art gas turbines are not only extremely efficient, but can also be quickly ramped up and down as needed. The flexible mode of operation facilitates the integration of renewable energy into the power grid. When there is an oversupply of ‘green’ electricity, the power plant goes into standby mode, and when there is a national shortage of electricity, surplus power is fed back into the grid, thus stabilising it.

Ziele des Projektes

PALM is planning a 30% reduction in its emissions by the year 2035. In the long term, PALM aims to achieve climate-neutral production in line with national and international climate targets. The burning of hydrogen instead of natural gas is an essential component of PALM’s transformation strategy. 

The highly efficient and flexible power plants already in operation today are making a significant contribution to reducing emissions.

Dr. Wolfgang Palm, Managing Director, Papierfabrik Palm GmbH & Co. KG

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The flexible operation of the gas turbines has already enabled a saving of 30,605 tonnes of CO2 during the trial period. By operating with 100% hydrogen, the industry can achieve CO2-free paper production in the foreseeable future.

Sum invested

More than €200 million was invested in modernising the power plants at the three German paper mill locations in Aalen, Eltmann and Wörth.‍


PALM is the launch customer for Siemens Energy’s new SGT-800 hydrogen-compatible gas turbines. The flexibilisation work was carried out in collaboration with ESFORIN SE.


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