Tuesday, November 18, 2025
Swedish forestry and bioproducts company Södra has taken a significant step in expanding its bioenergy operations by increasing the pellet production capacity at its Kinda sawmill. This strategic investment further enhances the company’s role as a supplier of renewable fuels and strengthens its commitment to supporting the transition to sustainable energy systems.
The newly added capacity at the Kinda facility will allow it to produce up to 25,000 tonnes of pellets per year, a substantial increase that will meet growing demands for eco-friendly energy sources. The expansion of the pellet plant supports Södra’s long-term strategy of increasing competitiveness while contributing to global sustainability goals.
The pellets produced at Kinda will be used in district heating systems, demonstrating the company’s dedication to leveraging by-products from sawmill operations. The raw materials that cannot be processed into sawn timber are now used in the form of pellets, which can be converted into heat and power. This sustainable approach ensures that every part of the raw material is utilised, making the sawmill operations more efficient and aligned with green energy principles.
With a production capacity of 25,000 tonnes of pellets annually, the Kinda facility is set to generate about 120,000 MWh per year. This energy output is equivalent to providing heating and hot water for up to 8,500 homes over the course of a year, illustrating the scale of the investment and its potential impact on local communities.
Daniel Olausson, Sales Director at Södra Bioproducts, commented on the investment, stating:
“The increased pellet production enables us to meet growing demand for 100% fossil-free energy, where pellets are a key resource in the green transition for industry, consumers, and combined heat and power plants. At the same time, we strengthen our local presence for the future and increase the added value throughout the entire value chain with our forest raw material.”
By expanding pellet production, Södra not only addresses local and global energy needs but also reinforces its sustainability credentials. The company’s focus on fossil-free energy solutions is an essential part of its broader strategy to contribute to a greener future. This investment aligns perfectly with the growing demand for renewable energy sources across Europe and beyond.
Alongside the expansion of its pellet production, Södra has secured district heating deliveries from the Kinda sawmill. This step is part of a collaborative effort with the Swedish energy company Tekniska Verken in Linköping. As a result of the investment, Södra can continue to provide fossil-free and locally produced heat to both households and businesses in the region.
Per Håkansson, Head of Södra’s District Heating Business, elaborated on the initiative:
“Through this initiative, together with our customer Tekniska Verken in Linköping, we ensure continued delivery of fossil-free and locally produced heat from Södra’s family forestry – to both households and businesses.”
This partnership not only supports the region’s heating needs but also helps reduce the reliance on fossil fuels. It reinforces Södra’s commitment to creating a circular economy where sustainable forestry practices directly contribute to renewable energy production. By securing local heating deliveries, Södra is helping to reduce carbon emissions while supporting the energy transition.
The investment in Kinda is a clear example of how Södra is combining innovation, sustainability, and local roots to create the energy solutions of the future. The Kinda sawmill serves as a model for integrating forestry operations with renewable energy production, demonstrating how the by-products of the timber industry can be used to generate clean energy.
Södra’s approach is becoming increasingly relevant as Europe continues to focus on reducing carbon footprints and embracing more sustainable energy systems. The company’s bioenergy solutions are part of a wider movement within the forestry sector to diversify and become a driving force in the transition to green energy.
Södra’s investment in Kinda sawmill represents more than just an increase in production capacity. It is part of the company’s broader long-term strategy to foster growth and sustainability while supporting Sweden’s ambitious energy goals. By investing in bioenergy, renewable fuels, and district heating, Södra is helping to reshape the future of energy production in Sweden and beyond.
This investment not only strengthens Södra’s market position but also underscores the importance of local solutions in the fight against climate change. Through sustainable forestry practices and bioenergy production, Södra is playing an integral role in creating a more sustainable world.
Södra’s Kinda sawmill investment is a significant move that combines bioenergy, innovation, and sustainability. With increased pellet production, secure district heating deliveries, and a commitment to fossil-free energy, Södra is advancing its strategy to support the green transition while enhancing local communities’ energy access. This is a clear example of how industry leaders can drive positive change through responsible investments in renewable energy.
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Tags: Forestry, green transition, Kinda sawmill, pellet production, Södra, sustainability, woodworking industry, woodworking UK
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