Arctic Paper has made a strategic decision to invest SEK 285 million in expanding and upgrading the biofuel installation at its Grycksbo mill. This forward-looking investment is projected to yield annual energy cost savings of SEK 50 million. In a noteworthy development, the enhanced installation will also generate an annual production of 50 kton of wood pellets, carrying an estimated market value of around SEK 100 million.

"We are charting a path towards environmental sustainability and energy diversity with this investment in our biofuel facility. The biofuel boiler at Arctic Paper Grycksbo positions us with a notably low climate impact and a competitive energy mix. This venture aligns with our long-term strategic vision to venture into green energy solutions. Notably, the investment promises energy cost savings of SEK 50 million per annum for the mill while simultaneously introducing an additional revenue stream through the sale of wood pellets. The circular nature of this business is evident as the pellets are crafted from residuals of sawmills," commented Michal Jarczynnski, CEO of Arctic Paper S.A.

The primary biofuels utilized in this endeavor will be sawdust and wood chips. However, the upgraded boiler's versatility extends to the potential use of other biofuels. The investment is slated to be financed through a combination of bank loans and equity, with completion anticipated during the first half of 2025.

Michal Jarczynnski further emphasized the strategic significance of the investment by stating, "This strategic move ensures the sustained competitiveness of Arctic Paper Grycksbo as a premium supplier of top-tier coated paper."

Source:arcticpapergroup.com