Norway-headed solid wood processor Moelven Industrier ASA (Moelven) has announced that it is investing SEK 382 million (≈ EUR 35.7 million) in a new pellet plant and energy production at its Moelven Valåsen sawmill in Karlskoga, Sweden. The innovative pellet mill is planned to be put into operation in the autumn of 2024.
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The investment is the result of the company’s previously announced sawmill capacity expansions in the region – Moelven Edanesågen AB and Moelven Valåsen AB.
Moelven takes responsibility for utilizing the entire natural resource when we use the forest. When half of the sawlog becomes fiber products, this is a very sustainable and profitable way of handling the residual raw material from our sawmills, said Morten Kristiansen, CEO of Moelven Industrier.
Integrated with the sawmill
The new pellet plant will be fully integrated with Moelven Valåsen’s sawmill in Karlskoga. The sawmill’s energy production will be expanded to meet the increased demand that comes as a consequence of already ongoing development projects.
The pellet plant will follow the same blueprint as Moelven’s first pellet facility in Norway, which is also fully integrated with Moelven’s Soknabruket sawmill. Commissioned in 2020, it was a first-of-its-kind plant in Norway.
We have an advantage in that we can benefit from the successful experiences of our first innovative pellet plant in Norway now that we are now going to take on a similar project in Sweden, Morten Kristiansen said.
Pellets for export
The new plant will have an initial annual production capacity of 80 000 tonnes but will be dimensioned for an annual capacity of up to 105 000 tonnes.
The investment will generate eight new jobs in Karlskoga, where Moelven already conducts operations through the sawmill Moelven Valåsen AB and its planing mill- and distribution center Moelven Valåsen Wood AB.
Moelven Pellets AB will produce white wood pellets of the highest quality class that will be distributed to the international market via vessels from Lake Vänern.
Moelven is well-positioned along the value chain. This means that we can create locally produced and sustainable products also for the global market, ended Morten Kristiansen.
