Sweden. Svenska Cellulosa Aktiebolaget SCA
| Date of agreement: | 21 Mar 2024 |
|---|---|
| Country: | Sweden |
| Customer: | Svenska Cellulosa Aktiebolaget SCA |
| Amount in SEK: | SEK 1,000 million |
| Amount in EUR: | EUR 88 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Manufacture of pulp, paper and paper products |
This loan contributes to climate change mitigation: 100%
Project
The loan has been provided to finance 50% of SCA’s investments in the Fasikan Wind Farm during 2023-2025. The wind farm is located on SCA’s land in Bräcke municipality, Jämtland county in northern Sweden.
The project consists of 15 new wind turbines with a total annual production capacity of 333 GWh. This corresponds to an annual consumption of electricity for approximately 15,000 households.
Work with felling and strengthening work on existing roads began in November 2023, and the wind farm is scheduled for completion in the beginning of 2026.
The core of SCA’s business is the forest, through Europe’s largest private forest holding. The forest products company offers paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and transport solutions. In 2023, the company added Renewable Energy as a separate business segment owed to its growing significance. SCA was founded in 1929 and is headquartered in Sundsvall, Sweden.
Fulfilment of NIB's mandate
Productivity:
The project adds 105 MW of wind power capacity to the SE2 price area in Northern Sweden.
Environment:
Wind power is one of the most sustainable ways to produce electricity. Given that the added electricity is exported and replaces power with an EU average carbon footprint, the avoided GHG emissions associated with the project is around 110,000 tonnes CO2 annually.
Expected impact
- Construction cost SEK: 2 billion
- Wind power penetration in SE2: 30%
- Wind capture price in SE2 2023 (Jan – Nov) EUR/MWh: 25
- Annual production (P50) MWh: 333
Sustainability summary
NIB has not identified any significant environmental or social sustainability concerns related to the investments.
