EGGER has reached a major technical milestone at its St Johann in Tirol plant in Austria, where its new power plant has generated electricity for the first time. The development marks an important step in the wood-based panel manufacturer’s long-term energy and environmental programme.
The project is significant for the wider woodworking and panel industry. Energy security, fuel price volatility and carbon reduction are now core concerns for manufacturers. EGGER’s latest investment shows how large-scale wood processors are moving towards more controlled, circular and low-carbon production models.
Construction began in spring 2024. Since then, EGGER has invested around EUR 80 million in the next stage of the energy project at its headquarters site. The new facility includes a steam boiler and combined heat and power system. It uses biogenic fuels to generate heat and electricity for the company’s own production processes.
New CHP System Supports Self-Generated Electricity
At the centre of the project is a 14.5 MW turbine. It is expected to produce around 100,000 MWh of electrical energy per year once the facility reaches full operation. With the first electricity now produced, the power plant will be gradually ramped up.
Full completion and the transition to regular operation are planned for the third quarter of 2026. During this phase, the system will be tested, optimised and integrated with existing plant infrastructure.
For EGGER, this is not only an environmental project. It is also a strategic industrial investment. The new power plant is expected to cover at least 70% of the site’s electricity needs through self-generation. That will reduce exposure to unstable energy markets and support long-term production reliability.
Moving Towards Production Without Natural Gas
One of the most important outcomes is the planned reduction of fossil fuel use at the site. In normal operation, the St Johann plant is expected to run without natural gas. This will bring fossil fuel use at the location close to zero.
For the wood-based materials sector, this is a strong signal. Panel production is energy intensive. Drying, pressing and heating processes require secure and consistent energy supply. By generating heat and electricity from biomass and biogenic production residues, EGGER is linking its industrial process more closely to its own material cycle.
This approach also fits the company’s wider climate strategy. EGGER has committed to Net Zero by 2050 and has stated that it wants to reduce emissions within its own operations and value chain, rather than depending on external compensation.
District Heating Brings Regional Benefits
The new plant will also support the surrounding region. EGGER’s St Johann site has operated a boiler system since 2008, supplying thermal energy for production and district heating for St Johann in Tirol and Oberndorf.
The new facility will expand this role. Together, the two boiler plants will provide heat for production and local district heating. This could help replace more fossil-based heating systems in nearby communities.
For industrial regions, this is a practical model. It shows how wood processing sites can become energy hubs. They can support their own production while also supplying useful heat to neighbouring areas.
Circular Wood Use Gains Greater Importance
The project also strengthens EGGER’s closed-loop production philosophy. The company uses sawmill by-products, wood chips, sawdust, thinning wood and recycled wood in its wood-based materials. Old furniture, pallets, packaging material and production scrap can also be processed for material recycling.
Residues that cannot be recycled into new products can be used on site to generate heat and electricity. This reduces waste, limits transport needs and improves resource efficiency.
For the woodworking industry, this is where the project becomes especially relevant. It shows how circular raw material use and energy generation can work together. Wood is not treated as a single-use resource. It is used first as material, then as an energy source only when further material recycling is no longer practical.
A Strategic Signal for Wood-Based Panel Manufacturing
EGGER’s first electricity generation at St Johann is more than a plant-level milestone. It reflects a wider shift in industrial woodworking. Manufacturers are under pressure to reduce emissions, stabilise energy costs and prove responsible resource use.
The Austrian project answers all three points. It increases renewable self-supply. It supports climate targets. It also reinforces the business case for integrated, circular production.
As the facility moves towards full operation in 2026, the St Johann project is likely to be watched closely by panel producers, machinery suppliers, energy planners and sustainability teams across Europe. It presents a clear message for the sector. The future of competitive wood-based manufacturing will depend not only on capacity and product quality, but also on energy independence, circularity and credible decarbonisation.
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