Increased energy costs and the relationship between energy use and climate change have resulted in an increased 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 meets one-third of requirements …
Holmen wholly or partly owns 21 hydro power stations located on the Umeälven, Faxälven, Gideälven, Iggesundsån, Ljusnan and Motala Ström rivers. Combined with the company’s own back-pressure power production, this means that Holmen is approximately 30 per cent self-sufficient in electricity. Production in the hydro power plants in 2010 totalled 1 145 GWh, just over that of a normal year. Holmen is a partner in the BasEl wind power company VindIn. The first wind turbines entered service at Skutskär at the end of 2009. Holmen’s share of the electrical energy they produced was just under 4 GWh in 2010.
… the rest is purchased
Most of the electricity needed at Holmen’s mills is purchased externally. The Group is consequently one of the largest purchasers of electrical energy in Sweden. To deal with the risks this poses, hedged long-term contracts are signed with the electricity suppliers. The prices of its purchased electricity in Sweden have been fully hedged up to 2012 and 85 per cent has been hedged for the following years up until 2015. At the end of 2010 a new hedged contract was signed for the period 2016–2021 for electricity supply equivalent to around 30 per cent of Holmen’s electricity purchasing requirement.
Bioenergy meets half the need for thermal energy
Biofuels, mainly in the form of bark and wood-containing liquors, meet approximately half of Holmen’s thermal energy requirements. Combined with recovered thermal energy, this means that almost two-thirds of the thermal energy needed is produced internally. Remaining quantities of heat are produced at and close to the mills using natural gas and oil, or are purchased from external suppliers.
Surplus heat
Iggesund Mill and Hallsta Paper Mill are located close to built-up areas. Surplus heat is delivered to the municipal district-heating networks.
Energy-saving measures
Efforts to improve energy efficiency and reduce the use of fossil fuels are increasing for reasons related to climate change and 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 back-pressure power, as well as making greater use of waste heat and increasing the proportion of bioenergy. A number of Group-wide sustainability
targets in the environmental area ensure that operations focus on climate and energy issues. This work has been successful, and the Group’s emissions of fossil carbon dioxide have fallen by 30 per cent since 2005. The decrease for the Swedish sites has been 55 per cent.
Some examples of current activities related to energy and climate change at Holmen mills are presented below.
Energy management systems
The Group’s Swedish mills have certified energy management systems. Workington Mill has been operating under a certifiable energy management system since the start of 2008. Holmen Paper Madrid has introduced an energy management system that was certified in 2009. In 2010 it became the first paper mill in Spain to be certified according to the European standard, EN 16001.
Preparations for wind power
Permit applications were submitted in 2010 for wind turbines at Blodrotberget and Blackfjället in the Municipality of Örnsköldsvik and at Varvsvik in the Municipality of Norrtälje. All these sites are on forest land.
The Varvsvik project is located alongside the Holmen factory in Hallstavik and is the only on-shore project area designated as being of national interest for wind power in the County of Stockholm. A permit is expected at the end of 2011, construction began in 2010 and it is hoped that operation will commence in 2013. Installed wind power capacity is estimated at around 50–60 MW.
Holmen and E.ON signed a contract on jointly developing wind power in the municipality of Örnsköldsvik at the beginning of 2011. The plan is to build 70 wind turbines mainly located on Holmen land. Annual production is estimated at around 330 GWh. The target is for the wind farms to be fully developed by 2015.
Holmen and Statkraft have signed a cooperation agreement for wind surveys at five potential wind farms in the Norrköping area. The areas are wholly or partly located on Holmen’s land. The surveys will start in autumn 2011, and decisions on any further cooperation will be made following completion of the wind survey work.
More biofuel
Holmen is gradually increasing the extraction of biofuel from its own forests and has become more active as a 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 significantly increase the volumes of wood and biofuel extracted.
Waste
Work is in progress in the Group to improve the prospects of extracting energy from waste. Various measures are being taken to raise the calorific value of waste.
Peat extraction
Holmen is investigating the possibility of harvesting peat on the Group’s land. To gain experience, peat cutting began outside Örnsköldsvik in 2009. A total of 46 GWh of peat was harvested on the site in 2010, and the area of peat extraction will be further extended in 2011 which, it is hoped, will increase the volume of peat harvested.
Industry-wide measures
Holmen has formed BasEl i Sverige AB along with other electricity-intensive companies. BasEl aims to increase the supply of electricity at competitive prices. BasEl’s wind power company, VindIn, commissioned the first wind turbines in Skutskär in 2009. The next project consists of a larger wind farm with around 24 turbines at Trattberget in the municipality of Örnsköldsvik.
Holmen and four other companies have launched discussions with Vattenfall to safeguard future baseload power that is free of carbon dioxide.