SWEDEN (News release) -- Arctic Paper has decided to invest SEK 285 million ($26.7 million) in the expansion and upgrade of the biofuel installation at the mill in Grycksbo, Sweden. The investment provides annual energy cost savings of SEK 50 million ($4.7 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 ($9.4 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 ($4.7 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 ($9.4 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.

Arctic Paper Group is a European company and a leading producer of high-quality graphical fine paper, bio-based packaging solutions, high-quality wood pulp, and energy, increasingly of non-fossil origin.