Energy

Why energy sourcing matters

Energy use is the largest contributor to global greenhouse gas emissions, accounting for around 60 per cent according to UN Agenda 2030 Goal 7. To meet global climate goals, the share of renewable energy in the global mix must increase substantially.

Across industries, the type of energy used in production plays a decisive role. Fossil-based energy leads to high emissions, while renewable energy significantly reduces the carbon footprint. Fossil emissions from the mills can vary from under 100 kg/tonne to over 2000 kg/tonne, a twentyfold difference driven by energy sourcing alone.

This means the climate impact of your product is directly shaped by where and how it’s made.

Towards fossil-free production

Holmen’s paper and paperboard mills are powered primarily by fossil-free energy, supported by guarantees of origin. Sweden’s national energy mix, dominated by hydro and wind power, enables low-emission production throughout our operations.

Over time, our mills have significantly reduced their reliance on fossil fuels by increasing the use of bioenergy and replacing fossil-based systems with fossil-free ones wherever possible. Our paper mills now operate almost entirely on fossil-free electricity, having reduced CO₂ emissions by around 95 per cent since 2005.

Our paperboard mills use more than 95 per cent non-fossil energy, using biofuels and recovered heat to generate power and steam.

The International Energy Agency (IEA) describes Sweden as a global leader in decarbonisation, as confirmed in its June 2024 review of the country’s energy policy. Sweden’s electricity system is overwhelmingly fossil-free, providing a strong foundation for Holmen’s transition. Our approach aligns with the IPCC’s recommendations to reduce fossil carbon and promote circular, biogenic energy systems. 

Energy efficiency in every process

All our mills are certified to ISO 50001, ensuring systematic energy management and measurable progress. We continually recover heat and reuse steam multiple times in production, from pulping to drying, to minimise energy loss and cut emissions.

In our paper mills, co-located operations with sawmills enable energy and material synergies. In our paperboard mills, internal transport and boiler operations have been optimised and increasingly electrified to shorten start-up times, reducing energy demand and CO₂ emissions.

Shared energy and local benefit

Holmen’s mills maximise the value of residual energy. At Iggesund mill, surplus heat from production supports the local community through district heating. At other sites, thermal energy is recovered and reused internally, reducing energy loss and improving overall efficiency. Bark and wood residues that cannot be used for products are transformed into renewable bioenergy, supporting both mill operations and, in the case of Workington mill, contributing electricity to the national grid.

Holmen produces renewable energy

Holmen Group contributes to the green energy transition by producing renewable electricity from hydropower and wind power on its land. 2024, this amounted to 1.7 TWh, covering around 60 per cent of the Group’s total energy use. Hydropower is the largest source, with 21 stations providing stable, low-emission electricity. Wind power is expanding, with new sites expected to boost annual production by 20 per cent in 2026.

Measuring and verifying our CO₂ footprint

Across all paper and paperboard mills, Holmen achieves one of the lowest average carbon footprints in the European industry. Ongoing improvements in efficiency and fossil-free energy sourcing keep our CO₂ emissions well below the European benchmark.