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Launch of Solör Bioenergi Strängnäs marks completion of SEVAB transaction

In Sweden, biomass-fired district energy provider Solör Bioenergy Group (Solör) has disclosed that it has taken the final step in the acquisition of a municipal district energy business SEVAB Calor Fjärrvärme AB (SEVAB) in Strängnäs. As of January 3, 2022, SEVAB has been renamed Solör Bioenergi Strängnäs AB with Group subsidiary Solör Bioenergi Fjärrvärme AB as 80 percent owner with the municipality retaining a 20 percent share via Strängnäs Kommunföretag AB.

Solör Bioenergy Group has completed the acquisition of 80 percent of the shares in the Strängnäs municipal district energy company SEVAB Strängnäs Energi AB with the municipality retaining a 20 percent share via Strängnäs Kommunföretag AB. In connection with the acquisition, which took effect on January 3, 2022, the company has changed its name to Solör Bioenergi Strängnäs AB (photo courtesy P-O Rosén).

Solör Bioenergy Group is a leading Scandinavian player in supplying renewable energy based on woody fuels. The company has operations located in 175 locations, primarily in Sweden and Norway, producing and distributing district heating, steam and electricity to homes, companies, public enterprises, and industries.

The business also includes energy recovery of impregnated wood and the production of solid biomass fuels such as briquettes and wood pellets. The SVEAB acquisition, which was first announced in June 2021, is part of the Group’s defined growth strategy to strengthen its position.

Gradual transfer

In connection with the acquisition, which took effect on January 3, 2022, the company has changed its name to Solör Bioenergi Strängnäs AB.

However, the transfer and change of ownership will not have any direct impact on customers. District heating continues to be delivered as usual and the same contract terms will continue to apply.

SEVAB will continue to operate the plant and manage administration such as invoicing and customer service during 2022 over a transitional period.

We are many who have worked hard in this process. I want to thank everyone in Eskilstuna Strängnäs Energi & Miljö (ESEM), Strängnäs municipality and external advisors who have contributed in various ways, said Stefan Wennerström, Head of Energy and Recycling at ESEM.

Joint investment program

The district energy plant in Strängnäs produces around 160 GWh of district heating annually. Production takes place predominately at a combined heat and power (CHP) plant in Strängnäs using recycled wood and biomass fuels as a base.

In addition, 20 GWh of electricity is supplied to the grid while an amount of steam is produced for some customers. The district heating network extends beyond the town of Strängnäs to serve clients in Åkers Styckebruk and Mariefred.

We look forward to producing and delivering district heating in Strängnäs, Åkers Styckebruk, and Mariefred and it is positive that the municipality retains part ownership so that we can work closely together. In addition, we can grow into our role by taking over operations over this year, said Jan Lindkvist, CEO of Solör Bioenergi Strängnäs AB.

Solör has together with the municipality of Strängnäs also agreed on a special investment program in local environmental and climate measures in Strängnäs, at a joint cost of SEK 10 million (≈ EUR 972 000) annually, over the next six years.

This is a fantastic opportunity for Solör and Strängnäs municipality to further develop district heating in Strängnäs in a sustainable and sustainable way, said Anders Pettersson, Chairman of Solör Bioenergi Strängnäs and CEO of Solör Bioenergi Fjärrvärme.

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