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A fossil-free Södra

Södra´s gol is to reduce scope1, 2 and 3 emissions by 50% by 2030 compared to the base yeear 2020.

Although we can make a difference, we can’t solve the problem on our own. To meet the challenge, we are working to stimulate both supply and demand and we know that bold policy decisions are required to steer developments in the right direction.

We are working in three parallel time phases, in which we are transitioning everything that is possible right now. We are initially working with the solutions that are almost market-ready, and conducting R&D to achieve totally new solutions that can be implemented as we move forward. We strongly believe in partnering with other companies at various levels of our supply chain.

Fossil-free production

We have come a long way in achieving fossil-free production in our pulp mills, at our sawmills, CLT plants, and nurseries.  Production in 2019 was 99.5% fossil free and 99.4% in 2021. Now we are working to get rid of the last fossil energy sources. 

We have replaced the fuel oil and gas in our production processes with bio-oil, biogas, pellets and our own residual products, and initiated a project to test electric power saws and brush saws. If we are to succeed in creating a greener world together, we believe that we need to look at a multitude of solutions, both large and small.

From electric forklifts to HVO – how we are rethinking logistics

In our mission to achieve fossil-free transportation, we are working on several fronts. We are partnering with vehicle manufacturers and other industry players to make a difference over the long term, but also finding solutions for our own logistics. We have introduced electric forklifts, for example, and only offer renewable alternatives (HVO and RME) at our filling stations.

We are working with customers, suppliers and authorities in an effort to move more of our goods by rail. We are streamlining our transportation needs by introducing purpose-built wagons, and pushing for heavier and longer vehicles. We are working hard to ensure that all forms of transportation are powered by renewable energy. We believe that if we are to succeed in transitioning our transportation system, we must stimulate demand for sustainable transportation.

Resource efficiency and innovation – how we can create supply

We consider the supply of sustainable renewable energy to replace all of the fossil fuels in use today to be a major challenge. By making our operations more energy-efficient and daring to invest in innovative solutions, we can create supply. Because we have a positive energy balance from the electricity generated by our industries, we can contribute to the transition to an electrified vehicle fleet.

We still believe that storable energy will be needed in the transportation system. In 2009, we were first to produce liquid biofuels from tall oil through our SunPine joint venture.

In 2020, we opened the world’s first commercial-scale facility for the production of biomethanol from woody biomass and we may also be first in the world with large-scale biodiesel production from solid biomass through our Silva Green Fuel joint venture. The transition will require a multitude of technical solutions that need various forms of energy and Södra is prepared to contribute. But we are also open to more. One day we might even transport paper pulp with fuels made from our own biogenic CO₂ from the pulp mills.

Charging poles and aviation biofuels – our employees are also choosing sustainable travel

We want our employees to be able to choose where they live. We believe that meetings between people are important for creating change and opportunities for globalisation. We are therefore convinced that we will also need employees who commute by car in the future and that we will continue to interact with customers, suppliers and new partners with fantastic ideas all over the world. But when our employees travel, it must be sustainable. We have therefore installed more than 100 charging points at our facilities so that employees can drive electric vehicles (EVs) to work, and when we fly, we choose biofuel flights. We have generated the electricity in our EV charging points, and possibly the aviation biofuel in the future as well.

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Our initiatives for A Fossil-free Södra in production

First large electric forklift in the forest industry

In partnership with Kalmar Industries, we introduced an electric forklift in our sawmill at Värö in 2019. Small electric forklifts have been around for some time, but are now taking centre stage among heavier vehicles. The electric forklift at Värö is the first of its size in the forest industry.

Challenge

  • Shortage of liquid biofuels
  • Workplace health and safety (diesel particle emissions)

Solution

  • In partnership with Kalmar Industries, we are testing an electric forklift in our sawmill at Värö. 

Effect

  • The electric forklift generates less noise and vibration, providing more comfort for the operator.
  • The same energy used to run our facilities is also used for our forestry vehicles, which means we can be self-sufficient in the energy for our forklifts.
  • The forklift is emissions-free.

Our nurseries are 100-percent fossil-free

Södra’s nurseries transitioned to fossil-free operation in 2018. Heating, machinery and vehicles are all powered by renewable energy.

Challenge

  • Sustainable heating for the greenhouses.
  • Fossil-free solution for heavy vehicles in rural areas

Solution

  • Greenhouses, production facilities and staff areas are heated with pellets from our own sawmills at Långasjö and Värö, or with geothermal heat pumps or bio-oil.
  • The electricity is green and generated in our pulp mills.
  • All machinery and vehicles are powered by hydrotreated vegetable oil (HVO).

Effect

  • Södra’s nurseries transitioned to fossil-free operation in 2018.
  • Heating, machinery and vehicles are all powered by renewable energy.

Biogas in Åstorp

Challenge

Due to the need for gas for impregnation, Södra Wood was not totally fossil-free.

Solution

Switched to biogas.

Effect

Södra Wood’s production became totally fossil-free.

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Fossil-free Södra in logistics

Our initiatives for A Fossil-free Södra in logistics

Unique partnership for greener air travel

From wood chips to aircraft in Småland. The aviation biofuel market is currently underdeveloped. To increase the supply of sustainable aviation fuel, KLM, Södra, Växjö Municipality, SkyNRG, Småland Airport, Fores and Luleå University of Technology have signed a statement of intent to study the feasibility of aviation biofuel production in Småland. The Swedish Energy Agency has approved the consortium’s application for the feasibility study.

Challenge

  • Sustainable travel when visiting our international customers.

Solution

  • Affiliated with KLM’s Corporate BioFuel Programme.
  • The Swedish Energy Agency has granted funding for a feasibility study of the conditions for developing new technologies and increasing the supply of sustainable aviation biofuel.

Effect

  • All of Södra’s flights with KLM and Air France are powered by biojet.
  • Feasibility study of aviation biofuel produced locally in Småland commenced.

Centrally allocated funds for transition to fossil-free

A transition of the transport sector will require both new solutions and a changed market. As part of the process to achieve fossil-free transportation by 2030, Södra is now earmarking an investment of SEK 20 million for the additional costs arising from the choice of new and sustainable transport solutions.

Challenge

The transition from fossil fuels often involves additional costs.

Solution

We are investing SEK 20 million to stimulate demand for fossil-free products.

Effect

  • Additional costs do not affect individual units internally.
  • Encourage employees to present new ideas for solutions.
  • Initiate collaboration to solve challenges.

Fossil-free port at Mönsterås

Södra’s port in Mönsterås was already totally fossil free by autumn 2017. All of the port’s vehicles and cranes are now powered by HVO.

Challenge

Large machinery involved in heavy and high lifting that need a lot of power.

Solution

All of the port’s vehicles and cranes are now powered by HVO diesel.

Effect

  • Greener, lower CO₂ emissions.
  • Crane manufacturers are now willing to collaborate and find new fossil-free solutions.

Forest machines are powered by HVO

Challenge

  • Additional costs due to tax incentives for petrodiesel.
  • The machines are working in different places/forests every week.
  • Very little interest shown by machine manufacturers.

Solution

Switch to HVO in our own machines to show that it works.

Effect

  • Lower emissions.
  • Show the way for our external contractors.
  • Show machine manufacturers that there is demand.

Own filling stations with biodiesel

Challenge

  • Fuel costs account for a high share of the total costs in a pressured industry.
  • Find a sustainable alternative to diesel for heavy trucks.
  • The need to refuel in several different places.
  • It must be possible to run forest machines sustainably.

Solution

  • Own filling stations at our operations.
  • Show the way by converting our own haulage operations.
  • Offer HVO and RME only, even for external hauliers.

Effect

  • Hauliers can now use liquid biofuels.
  • Increased demand for renewable fuels.
  • Requirement that truck manufacturers make trucks that can run on renewable fuel.

Liquid biofuel production via Silva Green Fuel

Silva Green Fuel AS is 49-percent owned by Södra, and 51-percent by Norwegian Statkraft. The company’s mission is to identify a cost-efficient technology for profitable large-scale production of second-generation liquid biofuels using forest biomass.

Challenge

  • Not enough liquid biofuel.
  • There is no production-ready technical solution for liquid biofuels from forest biomass.

Solution

We are building a demo facility in collaboration with Norwegian Statkraft to develop a new method.

Effect

Increase the supply of liquid biofuel in the market.

Biodiesel via SunPine

Challenge

Not enough liquid biofuel, and no production-ready technical solution for advanced liquid biofuels.

Solution

Collaboration with Preem, Sveaskog and the inventor Lars Stigsson in a joint venture.

Effect

  • Lower emissions from conventional diesel vehicles.
  • Increase supply of liquid biofuels in the market.

The mission of SunPine AB (which is 25-percent owned by Södra) is to use woody biomass from sustainably managed Swedish forests to extract products that enable the transition to a green economy. Tall diesel, rosin and bio-oil are extracted from crude tall oil. Tall diesel is a residual product from Södra’s pulp mills, and is an energy-efficient liquid biofuel with low CO₂ emissions.

Methanol purification in the pulp mill at Mönsterås

Challenge

  • The crude methanol in the process contains high concentrations of sulphur and turpentine, and is therefore burnt internally.
  • Shortage of bio-based methanol.

Solution

Develop a purification method to produce methanol for chemical use.

Effect

  • More resource-efficient
  • More liquid biofuels in the market

Most sustainable vessels in the Baltic Sea

Challenge

  • No incentives to reduce CO₂ emissions from shipping
  • The low interest in change among shipping companies leads to low interest from engine manufacturers to develop alternatives.

Solution

Feasibility study with shipping companies, engine manufacturers and the Swedish Environmental Research Institute (IVL) into how we can achieve the most sustainable vessels in the Baltic Sea.

Effect

  • We know that a transition is possible.
  • A transition will lead to low emissions of CO₂, NOₓ, sulphur and particles.

Collaboration led to fewer shipments with Project Connect

Challenge

Long-distance truck transportation through Europe.

Solution

Shift the volumes shipped by trucks to an intermodal solution, meaning a combination of rail-road transport, based on collaboration across the entire chain – from purchasing to logistics and market.

Effect

Lower CO₂ emissions due to more efficient rail transport, but also higher delivery precision and cost savings.

Higher freight capacity with new rail wagons

Challenge

Optimise the transportation of pulp.

Solution

In partnership with Kiruna Wagon, Södra Cell Värö has developed a new rail wagon that will eventually replace the wagons that are currently used to transport paper pulp from Värö to the Port of Varberg.

The new wagons have a load length of 20 metres, which is almost twice the length of the current wagons. The whole side can be opened for maximum accessibility and safe loading/unloading.

Effect

The new rail wagons will increase our freight capacity by 25 percent for the same train length, and reduce the need for transport by truck.

Södra is gearing up for climate action

Challenge

You should be able to live wherever you like but still travel to work sustainably. Using public transport to reach our facilities is difficult because they are not located in major cities and means that EVs are not always suitable for employees with long commutes. Using electricity for business travel between our units is also difficult.

Solution

More than 50 charging poles have been installed across our operations, with a total of 112 charging points. This investment in charging poles is unique because Södra’s excess generation is used to charge the vehicles. Green electricity generated locally in our pulp mills. The initiative was made by possible by Klimatklivet (financial support from the Swedish Environmental Protection Agency). Klimatklivet is a government policy initiative for climate-smart investments at local level.

Effect

Made business travel between our facilities with EVs possible, thereby increasing opportunities for fossil-free travel.

Research projects to accelerate the transition to fossil-free transportation in the forestry sector

Challenge

The forest industry currently accounts for about 25 percent of truck transportation in Sweden. Innovation diversity is required to make this transportation fossil-free, and electrification is a vital component.

Solution

Eight organisations (including Södra) have started a joint research project led by the Stockholm Environment Institute (SEI). The project revolves around pods – electric and self-driving trucks developed by Einride, which is an award-winning Swedish start-up specialised in sustainable road freight vehicles.

Another research project, Accelerated transition to fossil-free transportation in the forestry sector, is focused on speeding up innovations to achieve carbon-neutral transportation by 2045. The project will propose new systems and technology combinations that need to be tested in concrete demo projects.

Effect

The research project will lead to conclusions about the technology combinations that can help to accelerate innovation and the forest industry’s transition. The main focus will be to analyse their feasibility and develop a basis for possible demo projects, thereby accelerating the transition to fossil-free transportation.

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Contact us

Would you also like to be part of the fossil-free transition and do you have any questions or ideas for more solutions?

Contact Henrik Brodin, +46 (0)470-85624.

Email us