13 Nov 2025
Södra’s investment in Kinda strengthens position in bioenergy
Södra is taking the next step in its investment in the Kinda sawmill by increasing pellet production and securing district heating deliveries. The new capacity means that the Kinda facility will be able to produce up to 25,000 tonnes of pellets per year – a significant increase that strengthens Södra’s role as a supplier of renewable fuels.
This investment is part of Södra’s long-term strategy to boost competitiveness and support the transition to a more sustainable energy system. By utilising by-products from sawmill operations, a flow is created where raw material that cannot be processed into sawn timber is used to its fullest – from logs to heat.
New Investment Equals Heating for 8,500 Homes
The new pellet plant in Kinda will produce about 25,000 tonnes of pellets annually, equivalent to 120,000 MWh per year. This covers the heating and hot water needs for up to 8,500 homes* over the course of a year*.
“The increased pellet production enables us to meet growing demand for 100% fossil-free energy, where pellets are a key resource in the green transition for industry, consumers and combined heat and power plants. At the same time, we strengthen our local presence for the future and increase the added value throughout the entire value chain with our forest raw material,” says Daniel Olausson, Sales Director, Södra Bioproducts.
In addition to pellet production, district heating deliveries from the sawmill have also been secured through this investment.
“Through this initiative, together with our customer Tekniska Verken in Linköping, we ensure continued delivery of fossil-free and locally produced heat from Södra’s family forestry – to both households and businesses,” says Per Håkansson, Head of Södra’s District Heating Business.
The investment in Kisa is a clear example of how Södra combines innovation, sustainability and local roots to create the energy solutions of the future.