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 2011 totalled 1 230 GWh. Holmen is a partner in the BasEl wind power company VindIn. Holmen’s share of the electrical energy produced in 2011 by VindIn from its wind turbines at Skutskär was 5 GWh.
… 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. Purchases in Sweden are hedged to around 90 per cent for 2012, to around 80 per cent for 2013–2015 and to 30 per cent for 2016–2021. Hedging means that Holmen will not be fully affected immediately by changes in electricity prices.
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. This work has been successful and since 2005 the use of fossil fuels for the Swedish sites has decreased by 55 per cent.
Energy management systems
The Group’s Swedish mills and Holmen Paper Madrid have certified energy management systems. Workington Mill operate in accordance to a certifiable energy management system.
Preparations for wind power
Holmen sees great potential in wind power. The ambition is for Holmen to produce 1 TWh of electrical energy from wind power by 2020. The major share is to come from plants on Holmen’s own land, which is why wind surveys are being performed at several sites.
Permit applications were under consideration in 2011 for wind turbines at Varvsvik in the municipality of Norrtälje and at Blodrotberget and Blackfjället in the municipality of Örnsköldsvik. Decisions on these applications are expected in 2012. All these sites are on forest land.
Holmen and E.ON signed a contract on jointly developing wind farms in the municipality of Örnsköldsvik at the beginning of 2011. With around 70 turbines spread over three areas, mainly on Holmen’s land, annual production could reach around 475 GWh when all turbines have been built, which is estimated to be the case in 2015.
During autumn 2011, wind surveys began in Östergötland as a result of a cooperation agreement with Statkraft. A decision on whether to continue the cooperation will be made after the wind surveys have been performed.
Holmen has formed BasEl i Sverige AB along with other electricity-intensive companies. BasEl aims to increase the supply of electricity at competitive prices. Through part-ownership of BasEl’s wind power company VindIn AB, Holmen was present when the first turf was cut in April 2011 at Trattberget in Örnsköldsvik. There, VindIn AB is responsible for constructing at least 30 turbines, with the first to be commissioned in autumn 2012. Wind surveys were initiated at the mill in Workington in autumn 2011 in order to investigate the conditions for building wind turbines.
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 in the Örnsköldsvik area. A total of 40 GWh was harvested from the area in 2011.