In Sweden, the wood products major Setra Group has announced that it will invest in its own wood pellet production facility as a means to increase the value of biomass residuals while reducing transport-related carbon dioxide emissions.
At its Långshyttan facility in County Dalarna, Setra currently produces glulam, wood components, and cross-laminated timber (CLT).
The production gives rise to biomass residuals such as sawdust, shavings, woodchips, and off-cuts which are currently used for domestic heat production and customers in the immediate vicinity.
Now we want to supplement our product portfolio with the production of pellets. Manufacturing means that we increase the value of the residual products and that we become a more significant player in bioenergy as well. The investment is also completely in line with our philosophy of being green, ie doing business that benefits not only us but also customers, society, and nature, said Daniel Halvarsson, Business Area Manager Building Solutions and Components.
Production to start in late 2023
The new pellet plant will be built at Setra’s Långshyttan facility adjacent to where both CLT and wood component manufacturing is located.
Pellet production is anticipated to begin during the autumn of 2023, and the annual production capacity is approximately 26 000 tonnes.
The investment, the value of which has not been disclosed, will involve new employment opportunities.
We have fairly optimal conditions for starting production of industrial pellets in our factory in Kloster, Långshyttan. The raw material for pellets is the best imaginable with dry chips and shavings from our glulam, CLT, and wood component production. We have space in our factory area and several large industrial customers within a radius of 200 km, says Klas Flygare, Commodity Manager at Setra.
In addition to increased value for biomass residuals, the investment will also mean improved air quality within the plant with less dust, and more efficient transportation with a higher load filling capacity leading to lower carbon dioxide (CO2) emissions.