Arctic Paper has decided to invest SEK 285 million in the expansion and upgrade of the biofuel installation at the mill in Grycksbo. The investment provides annual energy cost savings of SEK 50 million. In addition to electricity and steam, the installation will annually produce 50 kton of wood pellets at an estimated value of approximately SEK 100 million to be sold on the market.
“Thanks to the biofuel boiler, Arctic Paper Grycksbo has a low climate footprint and a competitive energy mix. Now we are taking the next step as part of our long-term strategic plan to diversify into green energy. The investment will save SEK 50 million per year in energy costs for the mill while it adds an additional revenue stream as the sale of wood pellets – a circular business: the pellets are made of residuals from sawmills – is expected to generate revenues of approximately SEK 100 million per year,” says Michal Jarczyński, CEO of Arctic Paper S.A.
The main biofuels used will be sawdust and wood chips, but the modernized boiler is flexible and other biofuels can be used. The investment will be financed by bank loans and equity and is expected to be completed during the first half of 2025.
“The investment will secure long term competitiveness of Arctic Paper Grycksbo as a premium supplier of high-quality coated paper”, concludes Michal Jarczyński.
This disclosure contains information that Arctic Paper is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 09-08-2023 17:48 CET.