Arctic Paper Grycksbo Inaugurates Bio25 Energy Upgrade and Pellet Production Facility

Arctic Paper Grycksbo has officially inaugurated its Bio25 project, a SEK 285 million ($26 million) investment aimed at improving energy efficiency and sustainability at the mill.

The project, unveiled on April 17 in the presence of local politicians and media, includes the expansion and modernization of the mill’s biofuel boiler, as well as the installation of a new pellet production line. The upgraded system enhances flexibility in fuel sourcing, allowing the mill to utilize a broader range of biofuels, including sawdust from external suppliers.

A central component of Bio25 is the new pellets facility, which is designed to produce approximately 50,000 tonnes of wood pellets annually. The plant converts residual biomass generated during paper production into a marketable product, creating an additional revenue stream while improving resource utilization.

The project also integrates improved fuel logistics and energy recovery systems. Surplus heat generated during paper production is reused to dry biofuel, increasing overall energy efficiency and optimizing the mill’s energy flows.

“It is crucial to continue investing in the future, also in more challenging times. Bio25 is a good example of how we combine sustainable development with increased efficiency and strengthen Arctic Paper Grycksbo as a modern and competitive paper mill and workplace,” said Kent Blom.

Blom added that the initiative strengthens both operational resilience and energy performance while supporting new business opportunities through pellet production.

The Bio25 investment forms part of Arctic Paper Grycksbo’s broader strategy to enhance sustainability and efficiency in its operations.