Södra invests in pellet factory

Södra has invested in a new pellet factory at the sawmill in Långasjö. The investment totals SEK 20 million and will increase total pellet production by 10,000 tonnes. The very first delivery will be made in the week beginning 11 February.

 

“Pellets are a product of the future and an obvious alternative in the transition to sustainable energy solutions. Swedish small and mid-sized industrial enterprises are investing in pellets,” said Fredrik Tärneberg, Head of Sales, Energy Products, Södra.

To satisfy the demand for pellets, Södra commenced construction of a pellet factory last spring, which was completed at year-end. Following a period of adjustment and calibration, the very first pellets delivery will take place in the week beginning 11 February.

Demand is primarily from Swedish industry, which is replacing oil with pellets. Pellets produce heat like oil and are a direct substitute for oil. Another new application, and the new “trend” among horse owners, is to use pellets as bedding for horse boxes.

“Our pellets are made from 100-percent spruce without additives, which makes them ideal to use as bedding. We have also noted an increase in pellets stoves,” said Fredrik Tärneberg.

On 6-7 February, Södra is participating in the annual Nordic Pellets Conference in Varberg, which will be attended by 100 national and international representatives of pellet producers and users. 

Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of close to 52,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Net sales in 2017 were 20.5 SEK billion and there were 3,400 employees. Through value-generating relationships and a long-term approach, Södra is leading the way for the future of sustainable forestry.

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