Norway. Moelven Industrier ASA

Date of agreement:17 Jun 2024
Customer:Moelven Industrier ASA
Amount in NOK:NOK 300 million
Amount in EUR:EUR 26 million
Maturity:7 years
NACE sector / loan type:Manufacturing


The loan has been provided for the financing of Moelven Industrier’s new wood pellet and bioenergy plant in Karlskoga, integrated with the Valåsen sawmill in Sweden.

The new plant, set to be operational by the end of 2024, will produce 80,000 tonnes of pellets annually. To support this, a third 12 MW solid biofuel boiler will be installed, using wood by-products to meet the thermal energy demand of 56 GWh for the pellet factory, thereby also contributing towards meeting the total energy demand at Valåsen. Thus, the project will enhance Moelven Industrier’s sawmill capacities and meet the growing demand for bio-based energy.

In addition, replacing outdated driers at Moelven’s sawmills will increase capacity, safety, and energy efficiency. A new cloud-based enterprise resource planning (ERP) system will streamline operations and maintain international competitiveness. Moelven Industrier is one of the largest producers of sawn timber and wood-based building materials in the Nordics.

Fulfilment of NIB's mandate

Moelven is investing in resource optimization, capacity expansion, and process improvement.

Given that the sawmill in Valåsen, Karlskoga, will expand its sawn timber production, the investment in a new pellets plant will add value to the company’s internal value chain by ensuring efficient utilization of an increasing share of forest residues. This plant will double Moelven’s total pellet production, with an initial capacity of 80,000 tonnes per year, expandable to 115,000 tonnes, and is set to be operational by the end of 2024.

Additionally, investing in a cloud-based ERP system will accelerate the company’s digitalisation efforts and support daily operations, enabling Moelven to deliver more streamlined processes, achieve operational efficiencies and remain internationally competitive.

The pellet plant at Karlskoga sawmill is estimated to produce 80,000 tonnes of pellets annually with the quality standard ENplus and sustainability certification Sustainable Biomass Program (SBP).

The plant will be fully integrated with the existing operations of the Karlskoga sawmill. To support the increased pellet production, a new 12 MW solid biofuel boiler will be installed, bringing the total to three 12 MW boilers in operation. These boilers will utilise wood by-products as fuel, generating approximately 56 GWh per year of thermal heat for
internal processes.

Sustainability summary

Moelven Industrier possesses dual certifications from both the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) for Chain of Custody (CoC) across multiple sites. These certifications encompass the entire supply chain, including forestry operations, sawmills, and additional processing facilities.

Moelven is also compliant with the RED II directive, as they avoid the risk of unsustainable harvesting, and they account their emissions from forest harvesting.

Press release

NIB finances integrated wood pellet and bioenergy plant

Press release

NIB finansierer integrert trepellets- og bioenergianlegg