Holmen has invested significant sums in process equipment intended for economical use of electrical and thermal energy. Environmental protection expenditure is reported in accordance with Statistics Sweden guidelines.


Environmental investments

At the mills, environmental and energy concerns are important aspects in the planning of production and investments. Under Statistics Sweden guidelines, the investments are divided into direct and integrated investments, and investments for economical use of energy. Environmental investments include both direct (for treatment of emissions) and indirect (preventive) investments.

Electricity and heat-saving investments have been significant in recent years.

Two major investment projects have now been completed in the business area producing paperboard and sizeable environmentally related elements where included. A new recovery boiler with turbine was taken into use at Iggesund Mill in 2012. At the mill in Workington, a new bioenergy boiler and turbine were commissioned in early 2013. These investments are intended to make more economical use of electricity and thermal energy. The investment at Iggesund Mill amounted to SEK 2.3 billion, and the investment at the mill in Workington was worth SEK 1.1 billion. The Group's environmentally related costs for investments to save electricity and heat totalled almost SEK 580 million in 2012, with the main part consisting of costs linked to the above projects.

The costs for 2014 amounted to around SEK 320 million, with the environmentally related cost of erecting wind turbines in Varsvik in the Municipality of Norrtälje accounting for the majority of this figure. The electricity and heat-saving investments for 2016 amounted to SEK 8 million.

Environmental costs

Internal and external efforts

Efforts are needed to be able to pursue ambitious environmental activities. The costs of this include environmental personnel, operation of treatment equipment, waste management, supervision, environmental training, permit applications, environmental consultants, and costs of measures when operations are discontinued. The costs have totalled between SEK 170 and 210 million in the past five years.

Environmental taxes and charges

The mills pay tax on landfilled waste, carbon dioxide and sulphur tax and charges for emissions of nitrogen oxides.

As the Swedish mills have been able to reduce their use of fossil fuels in recent years, the costs of fuel-related taxes have consequently also fallen. Environmental taxes and charges are expected to decrease further as a result of comprehensive energy and climate-related investments that have been and are being made at several mills in the Group.

The environmental costs of forestry

The environmental costs of forestry are estimated as the value of the wood that is not harvested for environmental reasons. Holmen sets aside around ten per cent of its productive forest land and thus refrains from harvesting around ten per cent of the possible volume. The loss of income was estimated at around SEK 71 million in 2016.

Income

The Group's mills have participated in the EU Emissions Trading Scheme since 2005. The steps taken by the Group to reduce the use of fossil fuels and therefore carbon dioxide emissions have made it possible to sell emission allowances. The reported result varies from year to year. The result for 2016 was SEK 25 million.

Holmen has produced renewable electricity for many years. Participating in electricity certificate trading has generated revenues from this. The reported result has ranged between SEK 30 and 435 million over the past five years. The highest figure came in 2015. This was due to income from the sale of certificates received in relation to the biofuel boiler that was commissioned in early 2013 at the mill in Workington.

Sale of surplus energy and by-products/waste

Surplus thermal energy produced at some of the mills has been sold to municipal district heating networks for several years. The surplus electricity from the mill in Workington is sold to the local community.

Various types of by-product/waste arise in production. Large parts of this waste can be recycled and put to use, for example as fuel for energy production. Several of the mills sell such by-products to external users, for example for energy production and construction purposes.

Penalty charges

If officially permitted emission levels are exceeded, penalty charges can be imposed on the company that causes the emissions. The environmental and energy management systems introduced and regular checks on the industrial operations by the authorities mean that the risks of limits being exceeded can be managed successfully. For a long time Holmen has not caused any emissions that have led to penalty charges.

 

Environmental protection costs 2016  2015 2014 2013   2012
Costs, SEKm          
Investments (remedial and preventive)  55  12  26 122 60
Electricity and heat-saving investments1)  8  18  320 300 576
Environmental taxes and charges2)  14  12  10 14 22
Internal and external environmental costs3)  182  208  169 178 196
Environmental cost of forestry4)  71  101  70 84 93

 

  1. The high costs stated for 2012–2014 mainly consist of environmentally related elements of the implementation of biofuel boilers within Iggesund Paperboard and the wind farm at Varsvik, Norrtälje, Sweden.

  2. The stated amount includes costs for waste management, energy tax charged in Sweden on the use of fossil fuels, nitrogen oxide tax and inspection charges.

  3. This includes costs of environmental personnel, operation of treatment equipment, waste management, management systems, environmental training, applications for permits, environmental consultants and the costs of inquiries and measures in connection with discontinued operations.

  4. The environmental cost of forestry is calculated as the value of the wood that is not harvested for environmental reasons. Holmen sets aside 14 per cent of its productive forest for environmental reasons and thus refrains from harvesting around 14 per cent of the potential volume. The annual loss of income is estimated at around SEK 71 million.

 

Holmen AB, P.O. Box 5407, SE-114 84 Stockholm, Sweden.

Tel: +46 8 666 21 00  E-mail: info@holmen.com

  

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