Sveaskog has initiated trials using mineral fertiliser produced with renewable energy instead of traditional fossil natural gas. This pilot programme is a critical element of the company’s ambitious climate strategy, which aims to slash its overall fossil greenhouse gas emissions by 60 percent by 2034, compared to the 2022 baseline. The forestry sector is an essential player in the global climate transition, not only for the substantial carbon-absorbing capacity of the forests themselves but also for providing sustainable, long-lived wood products that displace materials like concrete and steel. By addressing emissions both within its operations and in the upstream supply chain—like the fertiliser used for forest cultivation—Sveaskog is setting a challenging benchmark for fossil-free forestry.
Cecilia Hellström, Sveaskog’s Sustainability Manager, emphasised the need for a holistic approach to achieve this goal. “We are implementing some measures to reduce dependence on fossil fuels. The single largest measure is on the fuel side, but to achieve the goal, we need to take a broad look at all parts of our business and investigate different possibilities and dare to test solutions that are not yet established on a large scale,” Hellström stated. “Testing fertiliser based on renewable energy is part of that work.”
The fertiliser being tested is manufactured by the Norwegian chemical company Yara AB. The innovation lies in the production of ammonia, the primary raw material for mineral nitrogen fertiliser. Traditionally, ammonia production relies on hydrogen derived from natural gas, a fossil fuel. In this renewable method, the hydrogen source is derived from processes powered by biogas or other forms of renewable energy.
This substitution is immensely impactful at the production stage, resulting in an emissions reduction of just over 80 percent compared to conventionally manufactured nitrogen fertiliser. Importantly, the final product remains chemically identical to its fossil-based counterpart, ensuring its function and efficacy in boosting forest growth are unaffected. The fertiliser is being integrated into Sveaskog’s regular fertilisation programme, which typically covers around 8,000 hectares annually to significantly enhance tree growth and, consequently, carbon sequestration.
The mineral fertiliser used in the trial also contains dolomite lime, preventing an acidifying effect on the forest soil, and a small amount of boron mineral, which is crucial for maximising the growth potential in certain regions and preventing boron deficiency problems that can sometimes follow nitrogen fertilisation in Sweden.
The mass balance principle
To accurately allocate the environmental benefit of this low-carbon production process, Sveaskog and Yara employ the mass balance principle.
- Production tracking: Within Yara’s European industrial network, a specific amount of ammonia is manufactured using biogas or renewable electricity.
- Allocation: The purchased fertiliser by Sveaskog is treated as being manufactured with this equivalent amount of low-carbon ammonia.
- No double-counting: This strict accounting ensures that the climate benefit—the 80% emissions reduction—is attributed exclusively to Sveaskog’s purchase and is not claimed by another customer.
The mass balance approach is a vital tool for industries transitioning to renewable raw materials, as it allows the integration of new, low-carbon feedstocks into existing complex production and logistical systems without costly physical separation. It facilitates the scaling up of renewable materials by leveraging existing infrastructure while maintaining transparency for the end-user.
While the renewable fertiliser trial tackles a key upstream input, Sveaskog’s 60% emissions reduction goal requires a comprehensive approach across all operational facets, from planting to harvest and transport. Other crucial measures being implemented or planned by the company include:
- Renewable fuels for transport: Rapidly converting road transport used in forestry operations to renewable diesel (HVO), which can cut carbon emissions by up to 90%.
- Biofuel in shipping: Increasing the use of biofuel alternatives in the shipping of timber products.
- Cultivation inputs: Replacing peat with renewable alternatives in the company’s nurseries for plant cultivation, further reducing the reliance on fossil-intensive inputs.
- Electrification and efficiency: Continued focus on phasing out fossil fuels in forestry machinery and road construction work, a significant challenge given the power requirements of harvesting equipment.
By combining ambitious targets for both direct operations (Scope 1 & 2 emissions) and the entire value chain (Scope 3, including purchased goods and services like fertilizer), Sveaskog is actively defining a practical and scalable roadmap for the future of sustainable, fossil-free forestry in the Nordic region and beyond.
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