Holmen's Board has today taken the decision to construct the Blåbergsliden wind farm on its land outside Skellefteå in northern Sweden. The investment totals SEK 1.3 billion and comprises 26 wind turbines with a combined capacity of 143 MW.

"For Holmen, the establishment of large-scale wind power provides a logical complement to our hydro power. It's also an effective way of obtaining added value from our forest ownership, and additional renewable electricity is positive for both Sweden and the climate," says Henrik Sjölund, Holmen President and CEO.

The company's investment in wind power, combined with the growing forest and renewable products manufactured at Holmen's mills, will contribute to a more sustainable society. The Blåbergsliden facility will increase Holmen's production of renewable energy by 35% to over 1 600 GWh. This is a significant step in the development of Holmen's energy business. Following this investment decision, Fredrik Nordqvist, Senior Vice President Renewable Energy, will join Holmen's Group management.

"The European energy market is undergoing transition because of the issue of climate change. Politicians have determined that fossil-fuel generation in the EU should be phased out and replaced with renewable energy. As a large landowner, we have a unique opportunity to develop our own wind power projects. Now that wind power's production costs have decreased considerably owing to technical developments, we believe we can obtain a good return by investing in wind power," says Henrik Sjölund, Holmen President and CEO.

Blåbergsliden will be constructed in cooperation with GE Renewable Energy and is expected to be operational by the end of 2021. Holmen's application to construct a wind farm in nearby Blisterliden is currently being reviewed and approval is likely to be received during 2020. Alongside this, building applications are being prepared for additional wind power facilities on Holmen's land in southern and central Sweden.

For more information, please contact:
Henrik Sjölund, President and CEO, Holmen, tel. +46 8 666 21 05
Stina Sandell, Director of Sustainability and Communications, Holmen, +46 739 86 51 12

This information is information that Holmen AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 11 December 2019 at 18.00 CET.