European Investment Bank pumps SEK1.3B into Billerud’s Frövi bioproduct mill

27 Nov 2023 --- The European Investment Bank (EIB) has signed a SEK1.3 billion (US$124 million) loan agreement with Billerud to modernize and upgrade the company’s Frövi bioproduct mill in Sweden, including replacing a recovery boiler.

Billerud says the upgrades will help achieve its environmental sustainability strategy by increasing energy and resource efficiency. Materials made at Frövi mill are used in various packaging applications, focusing on F&B packaging.

“The renewal and modernization of production processes and industrial facilities are key to achieving EU climate targets and securing the sustainability and competitiveness of EU manufacturing,” says EIB vice-president Thomas Östros.

“This project improves the energy and resource efficiency of the mill and contributes to the shift from fossil-based packaging material, such as plastic, to packaging made of renewable resources. As the EU climate bank, the EIB is important in supporting companies that pioneer new and effective solutions for recyclable materials and resource-efficient manufacturing.”

Fiber-based packaging continues to grow throughout the industry as consumers and businesses look to move away from fossil-based plastics. Billerud says the materials it produces can be recycled many times and made into recycled boards before finally being used for energy production.

The investment will help achieve the European Green Deal, says EIB.Shelf life extension
Increasing levels of global urbanization are making shelf life extension increasingly important for F&B products, notes Billerud, as produce must stay fresher for longer to ensure nutrients reach consumers and to prevent food spoilage — one of the world’s chief causes of methane emissions.

Food waste is high on the EU’s agenda, as it was responsible for some 7% of the bloc’s GHG emissions in 2022 — exceeding emissions from the aviation sector.

Over 80% of paper and cardboard packaging waste in the EU is recycled, a recycling rate more than double that for plastic packaging, notes Billerud.

“The new recovery boiler will allow Billerud to implement energy improvement measures to meet future environmental requirements and ensure stable availability of pulp production,” says Billerud acting president and CEO Ivar Vatne.

“This is a long-term investment in efficient, sustainable and safe production, which increases our competitiveness and benefits our customers. We are pleased to see the EIB’s support for this project.”

The mill also produces valuable tall oil and turpentine as by-products and generates renewable energy — the surplus of which will be sold to local communities and neighboring businesses.

In addition, a vegetable growing project is being built next to the Frövi mill that will use the residual heat produced by the facility.

The EIB says the project is aligned with its Climate Bank Roadmap and supports low-carbon technology and products and energy and resource efficiency. It also supports the European Green Deal with its climate action objectives, the environmental targets embedded in the EU bioeconomy and plastics strategies, and the EU zero pollution action plan.

By Louis Gore-Langton

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