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Annual and Sustainability Report 2024

Strategy for our markets

The strategies for our markets, our facilities and our energy and fuel management guide our progress. Here we explain our strategies for each area.

"Permanent negative emissions are an essential element in achieving climate targets and net-zero emissions."

Per Ytterberg, Head of BECCS

Strategy for our markets

Industrial facility with a large silver silo and modern black building at dusk under a clear blue sky. Outdoor staircase is visible on the building's facade.

Strategy for our facilities

Our production, distribution and energy storage infrastructure will be continuously developed to enable achievement of our market strategy and meet increased environmental requirements. We work proactively to ensure that our production plants have the environmental permits required for us to realize our market strategy. In practice, this means that our development is constantly tested against the high standards set by environmental legislation.

One high priority area is maintaining extremely high availability at our primary production facilities, as these have the best financial and environmental performance.

One strategic goal is to minimize our most expensive production in order to lower the overall cost of the district heating system.

A large pile of stacked logs on the left and a mound of wood chips on the right are reflected in a calm body of water, under a clear blue sky.

Strategy for energy and fuel supply

District heating will be produced to a significant extent, as it has been, from waste heat generated by other social processes, such as municipal wastewater treatment plants, final treatment of residual waste through incineration, data center cooling, return flows from the district cooling network for air conditioning, etc. By recovering energy and optimizing our production and distribution systems, we decrease the district heating system’s need for biofuels. Energy recovery and production optimization are an integral part of our market strategy.

We will continue to ensure a stable, secure biofuel supply. The biofuels we use will meet legal requirements specific to sustainability as well as the requirements and expectations of the voluntary market for certified negative emissions.

We have maintained our focus on residues and by-products from the forest industry’s main processes. These biomass flows – which arise continuously from forestry operations, the pulp industry and sawmills, whether or not we make use of them – have a limited range of alternative uses for various reasons, due to their quality. The long-term, sustainable viability of the district heating business lies in these categories of biomass.

To address and meet new demands for high security of supply in the event of crisis, different types of biofuels of various origins will be included in our portfolio, and some biofuels will be able to be stored for longer periods.

We will also develop efficient and flexible transport logistics that reduce transport’s climate impact.