Holmen uses large amounts of energy. The manufacturing of thermo-mechanical pulp is particularly heavy on electricity. The proportion of electricity produced from hydro power is substantial and the production of electricity from biomass fuels and wind power is increasing in the Group.
The majority of the energy Holmen uses is fossil-free. The proportion of electricity produced by our own hydro power is significant and our own production of electricity from biofuel and wind power has increased in recent years within the Group.
We have certified energy management systems at our units in the Group and have programmes to streamline the use of energy.
Energy costs and the relationship between energy use and climate change have resulted in a focus on energy issues in the Group. It is crucial to Holmen’s long-term profitability to keep energy consumption and costs as low as possible.
Company-generated electricity equals half of consumption
Holmen wholly or partly owns 21 hydro power stations located on the Umeälven, Faxälven, Gideälven, Iggesundsån, Ljusnan and Motala Ström rivers. In 2022 total production at the hydro power stations was 1 175 GWh. Combined with electricity production from Holmen’s wind turbines (386 GWh) and electricity production from the mills, known as back-pressure power (520 GWh), this corresponded to 57 percent of Holmen´s total demand of electricity energy.
Most of the electricity needed at Holmen’s mills is purchased externally. To handle fluctations in price and the risks this entails, Holmen signs financial insurances and hedged long-term contracts with the electricity suppliers. For 2022, just over 90 per cent of Holmen’s expected electricity is bond on these terms.
Bioenergy covers a major part of the need for thermal energy
Biofuels, mainly in the form of bark and wood-containing liquors, meets about 77 percent of Holmen’s thermal energy needs. Recovered thermal energy accounts for about 17 percent of the required thermal energy. Remaining quantities of heat are produced primarily at and close to the mills using natural gas, oil and LPG.
Surplus energy
Iggesund Mill and Hallsta Paper Mill are closely located to residential areas. During 2022, Iggesunds mill och Hallsta paper mill delivered 26.1 GWh district heating of which 20.3 came from residual heat. From the mill in Workington, 97 GWh of surplus electricity was delivered to the grid.
Energy-saving measures
Efforts to improve energy efficiency and reduce the use of fossil fuels are increasing due to climate change and scarcity of resources. Holmen is therefore making active efforts to identify and implement energy-saving measures and to increase the level of self-sufficiency in energy.
This mainly involves improving efficiency in the use of energy and increasing the proportion of electricity produced by the company, as well as making greater use of waste heat and increasing the proportion of bioenergy.
Energy targets
Holmen’s business units are responsible for setting targets for energy efficiency.
Read more about every unit’s energy targets here.
Energy management systems
A certified energy management system is in place at all the plants in the Group except for Linghem, Bygdsiljum and Kroksjön sawmills. Work is in progress to certify these sawmills, which will then be included in Holmen Wood Products’ certificate.
You can access Holmens certificates here.
Hydro and wind power
Hydro and wind power have low operating costs, since they do not require the purchase of fuel, and production is virtually free of carbon dioxide.
Holmen is a major land owner and has the potential to develop its land holdings by establishing wind farms on its own sites with good wind conditions. Technical advances and a new generation of more efficient wind turbines, combined with higher electricity prices, create opportunities for the future establishment of wind power on the Group’s land.
Wind power
Blåbergsliden
In 2022, Holmen built the Blåbergsliden wind farm in Västerbotten with an annual electricity production of just over 400 GWh.
Varsvik
Construction of Varsvik wind farm began in July 2013 and the wind farm was commissioned in December 2014. Its 17 turbines make Varsvik the largest wind farm in Uppland. The good wind conditions mean this area just north of Hallstavik is ideal for the production of wind power.
Wind shear is high in Varsvik, resulting in a need for tall turbines to reach a good wind resource. The higher the turbine, the less turbulence there is.
The annual production of 150 GWh renewable electricity is equivalent to the domestic electricity consumption of approximately 30 000 Swedish homes.
Since February 2022, Holmen has owned 100 per cent of Varsvik, which was previously partly owned.
Blisterliden
In 2015 an application was submitted to build 33 wind turbines at Blisterliden wind farm in the municipality of Skellefteå. The Swedish Armed Forces advising against 19 of the wind turbines in the project has led to a decision being delayed.
Klintaberget
An application for a permit for the new wind farm in Klintaberget in Östergötland was submitted in autumn 2021. The permit application for Klintaberget was revised in May 2022 to cover 12 wind turbines located in Norrköping municipality. In November 2022, the political parties in control of Norrköping since the election in September 2022 decided to pass a strategic decision to say no to Klintaberget, which means that the municipality intends to exercise its veto against the project. It is likely that the County Administrative Board will cease processing the application in the light of the municipality’s decision.
Tigerberget and Högaliden 2
Two new wind farm consultations have been launched. These cover Tigerberget in Hudiksvall and Högaliden 2 in Robertsfors.
Hydro power
Holmen wholly or partly owns 21 hydro power stations located on the Umeälven, Faxälven, Gideälven, Iggesundsån, Ljusnan and Motala Ström rivers. Normal annual production amounts to approximately 1 100 GWh.
New environmental legislation for hydro power entered into force on 1 January 2019. The legislation means that hydro power operators who lack modern environmental conditions will need to apply for a review under the Swedish Environmental Code before the end of 2039. In late 2022, the Government announced that the plan will be paused for a year in order to investigate the consequences of the review on the power system.
Holmen’s plants have been registered under the national plan for revision of hydro power plant licences. Partly owned facilities have been reported by the respective main owner.
Renewal of the wholly owned Junsterforsen hydro power plant is planned within the current permits. Procurement of the main parts of the project was carried out in 2021 and planning work is in progress with a certain amount of manufacturing already commenced. It is planned that the main project will be carried out in 2024 and sub-projects such as replacing scaffolding, the intake gate and painting the intake pipe in 2023.
Mining
Holmen has a total of 15 permits for commercial mining, and an additional nine new mines where consultation is in progress or where an application has been submitted. One of these projects is Kågarbol, where a permit has been granted but has not yet entered into legal force.
Biofuel
Holmen extracts biofuel from its own forests and has established itself as buyer and seller on the biofuel market. Holmen’s long-term forest stewardship efforts are increasing the total stock of wood. By taking further measures to stimulate growth, it will therefore eventually be possible to increase the volumes of wood and biofuel extracted. In 2022, Holmen delivered 203 GWh of branches and treetops externally.
By-products/waste
Work is in progress in the Group to improve the prospects for extracting energy from by-products/waste. Various measures are being taken to raise the calorific value of the materials.
Read more about bi-products and waste here.
Peat extraction
Holmen has a peat extraction site outside Örnsköldsvik which is harvested for energy on an annual basis. In 2022 production amounted to 85 GWh.