The new reporting segment – Renewable Energy – will be started on January 1, 2023. The move is aligned with SCA’s goal to grow and realise business opportunities in the renewable energy sector.
October 30, 2022
SCA, one of Europe’s key producers of renewable energy, makes use of residual and by-products from its forestry activities. The Company has become one of the leading producers of sustainable bioenergy in Europe. Previously, SCA had expressed its intention to continue to grow in the energy sector through investments and organic growth. Moreover, in 2021, SCA informed about its plans to invest along with Finnish energy company St1 in a new biorefinery in Gothenburg for biofuels.
“We see growth opportunities in the renewable energy sector, where we have announced plans to grow our presence in wind power and bio-based energy. Our ambition is that renewable energy will be a long-term value driver for SCA”, says Mr. Ulf Larsson, President and CEO.
The Renewable Energy segment will inform about the production and sale of refined and unrefined biofuels. What’s more, the reporting segment will also state the development costs and revenues linked to the wind power business and sales of green by-products from the industry for energy production.
The Forest segment comprises the supply of raw materials for SCA’s forestry activities and the management and felling of privately-owned forest land in northern Sweden and the Baltics. Activities in renewable energy linked to forest land, including wind power leases and the sale of unprocessed biofuels from forest land for energy generation will be reported in the Forest segment until January 1, 2023, and in the Renewable Energy segment thereafter.
The Wood segment comprises the sawmill business with five sawmills in northern Sweden and wood processing and distribution. The sales of refined biofuels made from residual products from sawmills, mainly pellets, will be reported under the Wood segment until January 1, 2023, and in the Renewable Energy segment thereafter.
The pulp segment includes the production and sale of northern bleached softwood kraft (NBSK) and chemi-thermomechanical pulp (CTMP) that are produced at our pulp factory in Östrand, which is also a net producer of green energy and by-products such as tall oil and turpentine. Sales of tall oil, a by-product of pulp production, will be reported under the Renewable Energy segment from 1 January 2023.
The Containerboard segment manufactures and sells packaging paper (kraftliner), with production taking place at our integrated paper mills in Obbola and Munksund. The development related to renewable energy will be reported in the Renewable Energy segment from January 1, 2023.