Holmen Skog signs multi-year agreement with Umeå Energi to supply byproducts from forest harvesting for biofuel; forestry waste is used in district heating production at Dåva Power Plant and constitutes a significant amount of locally produced biofuel

Holmen Skog has signed a multi-year agreement with Umeå Energi to utilize by-products from forest harvesting, such as branches and tops, as biofuel. The tree remnants that were previously left in the forest are now used in district heating production at the Dåva Power Plant and constitute a significant amount of locally produced biofuel.

For several years, Holmen has focused on biofuel in southern Sweden, while operations in the northern part of the country have been dormant. However, with a changing global situation, energy crisis, and increased interest in biofuels, the market situation has changed. Now, Holmen has resumed its operations this spring.

"This collaboration is completely in line with Holmen's sustainable business. By utilizing by-products from our operations as biofuel, we contribute to building resource-efficient cycles in society around renewable raw materials," says Johan Karlsson, Timber Manager at Holmen Skog in the northern region.

Read the press release from Holmen Skog (In Swedish)

Advantages of biofuel:

By increasing the use of biofuels, we can contribute to reducing climate impact, promoting sustainable development, and creating a more diversified and sustainable energy mix in the green transition.

• Reduced climate impact: Biofuels are renewable and produced from organic material such as plants and residues from forestry. When biofuels are burned, only the carbon dioxide absorbed by trees and plants during their lifetime is released, making it a carbon-neutral energy source.

• Reduced dependence on fossil fuels: By using biofuels, we reduce our dependence on non-renewable fossil fuels such as oil and coal.

• Integration with existing infrastructure: Biofuels can be used in existing transportation and energy distribution infrastructures without significant investments in new infrastructure. This makes it a realistic and rapid solution to reduce climate impact.

• Complementary role in the energy system: Biofuels can serve as a complementary energy source to other renewable energy sources such as solar and wind power. It can be particularly useful for balancing intermittent energy sources (energy sources whose production varies over time and is not constant. They only generate energy during certain periods or to a certain extent, such as wind power) and ensuring stable energy supply.

• Local and regional development: Biofuel production can create employment and economic growth in local and regional areas, particularly in agriculture, forestry, and processing industries involved in biofuel production.