Pulp and paper sector is a big power consumer. Pulp and paper mills use electrical and heat power simultaneously in a technological process as process steam. As case stands, solutions have been chosen to assure the electrical and heat power requirement with own heat and power plants. The paper shows a new energy concept in the pulp and paper industry aiming the rise of electrical power output in the mills’ electrical and heat plants. This concept is based on the mixed gas-steam cycle.