Moelven is investing SEK 382 million in a new pellet mill and power plant at Moelven Valåsen in Karlskoga. The improved pellet plant is expected to be operational in the autumn of 2024.
Moelven builds pellet factory in Karlskoga, Sweden
“Moelven takes responsibility for using the entire natural resource when we manage the forest. When half of the logs become fibre products, this is a very sustainable and profitable way to manage the residual raw material from our sawmills,” says Morten Kristiansen, CEO of Moelven Industrier ASA.
This investment is the result of the expansion of the Moelven sawmill in the region. Group management previously announced a total investment package of SEK 635 million for investments in Moelven Edanesågen AB and Moelven Valåsen AB.
Integrated with the sawmill
The new pellet plant will be fully integrated into the Moelven Valåsen sawmill in Karlskoga. Energy production will be expanded to meet the growing demand for bio-based energy due to ongoing development projects. The investment has a cost of SEK 382 million.
The plant is built in a similar way to Moelven’s first pellet plant in Sokna, Norway, also fully integrated with the Moelven Sokna plant. When that pellet plant became operational in 2020, it was the first of its kind in Norway. The production method had never before been used in northern climates.
“We have an advantage in that we can use the experience from the success story of our first innovative pellet plant in Norway now that we are about to take on a similar project in Sweden”said Kristiansen.
The pellet plant will have a capacity of 80,000 tonnes of pellets/year, but has the scale to be able to increase production to 105,000 tonnes/year in the long term.
The investment means eight new jobs in Karlskoga, where Moelven already operates through the sawmill Moelven Valåsen AB and Moelven Valåsen Wood AB planing and distribution centre. Moelven Pellets AB will produce white wood pellets of the highest quality, which will be distributed to the international market by ship from Lake Vänern.
“Moelven is positioned across large parts of the value chain. This enables us to create locally produced and sustainable products for the global market as well.”says Kristiansen.