BIOPRODUCT MILL ENVIRONMENTAL UPGRADE

Promoter – Financial Intermediary

BILLERUD AB (PUBL)

Location

• Sweden

Description

The project will finance investments to upgrade the recovery boiler of the bioproduct mill at the existing site in Frövi (Sweden), with the aim of improving its environmental footprint and increasing energy efficiency.

Additionality and Impact

The project reduces negative climate and environmental externalities in producing renewable packaging solutions that require high hygiene standards and, therefore, substitute for virgin plastics in packaging. The project addresses suboptimal investment situations by strengthening supply for, competitiveness of sustainable, recyclable and renewable packaging applications against traditional, mainstream plastics packaging generating negative environmental and carbon externalities. The project also increases the energy efficiency and strengthens the mill's renewable energy generation.

Thereby, the project contributes to the EU Green Deal and is aligned with the Bank's climate action and environmental sustainability objectives, the EU Forest and Bioeconomy strategies as well as EU Zero Pollution Action Plan. 

The Bank's contribution to the project is supported by a combination of its flexible drawdown terms as well as crowding in other financiers, thereby facilitating the projects financing and its successful implementation.

Objectives

The aim is to ensure the long-term operation at the production site and an environmentally improved, stable and efficient pulp- and board production. The new recovery boiler is designed to ensure high-energy efficiency by efficient pre-heating, high dissolved liquor combustion and efficient heat recovery of flue gases. A further objective is to significantly reduce emissions to air after the modernisation. The incineration of gases in the recovery boiler will drastically reduce the odour and sulphur emissions. The project further aims to substantially contribute to territorial integration within the EU by supporting a bioeconomy project with substantial spill-over effects towards the local and regional economy.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

SEK 1300 million (EUR 109 million)

Total cost (Approximate amount)

SEK 2630 million (EUR 221 million)

Environmental aspects

The project falls under the scope of the environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU and an environmental permit for current and increased production of sulphate pulp and cardboard was issued by the competent authority. A complete assessment of the permitting processes will be done at appraisal.

Procurement

The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to EU public procurement legislation, then the European Commission will be duly informed, requiring the promoter to apply those rules.

Status

Signed - 22/11/2023