Our initiatives for a fossil-free Södra in logistics

Unique partnership for greener air travel

From wood chips to aircraft in Småland. The aviation biofuel market is currently underdeveloped. To increase the supply of sustainable aviation fuel, KLM, Södra, Växjö Municipality, SkyNRG, Småland Airport, Fores and Luleå University of Technology have signed a statement of intent to study the feasibility of aviation biofuel production in Småland. The Swedish Energy Agency has approved the consortium’s application for the feasibility study.

Challenge

• Sustainable travel when visiting our international customers.

Solution

• Affiliated with KLM’s Corporate BioFuel Programme.
• The Swedish Energy Agency has granted funding for a feasibility study of the conditions for developing new technologies and increasing the supply of sustainable aviation biofuel.

Effect

• All of Södra’s flights with KLM and Air France are powered by biojet.
• Feasibility study of aviation biofuel produced locally in Småland commenced.

Centrally allocated funds for transition to fossil-free

A transition of the transport sector will require both new solutions and a changed market. As part of the process to achieve fossil-free transportation by 2030, Södra is now earmarking an investment of SEK 20 million for the additional costs arising from the choice of new and sustainable transport solutions.

Challenge

The transition from fossil fuels often involves additional costs.

Solution

We are investing SEK 20 million to stimulate demand for fossil-free products.

Effect

• Additional costs do not affect individual units internally.
• Encourage employees to present new ideas for solutions.
• Initiate collaboration to solve challenges.

Fossil-free port at Mönsterås

Södra’s port in Mönsterås was already totally fossil free by autumn 2017. All of the port’s vehicles and cranes are now powered by HVO.

Challenge

Large machinery involved in heavy and high lifting that need a lot of power.

Solution

All of the port’s vehicles and cranes are now powered by HVO diesel.

Effect

• Greener, lower CO₂ emissions.
• Crane manufacturers are now willing to collaborate and find new fossil-free solutions.

Forest machines are powered by HVO

Challenge

• Additional costs due to tax incentives for petrodiesel.
• The machines are working in different places/forests every week.
• Very little interest shown by machine manufacturers.

Solution

Switch to HVO in our own machines to show that it works.

Effect

• Lower emissions.
• Show the way for our external contractors.
• Show machine manufacturers that there is demand.

Own filling stations with biodiesel

Challenge

• Fuel costs account for a high share of the total costs in a pressured industry.
• Find a sustainable alternative to diesel for heavy trucks.
• The need to refuel in several different places.
• It must be possible to run forest machines sustainably.

Solution

• Own filling stations at our operations.
• Show the way by converting our own haulage operations.
• Offer HVO and RME only, even for external hauliers.

Effect

• Hauliers can now use liquid biofuels.
• Increased demand for renewable fuels.
• Requirement that truck manufacturers make trucks that can run on renewable fuel.

Liquid biofuel production via Silva Green Fuel

Silva Green Fuel AS is 49-percent owned by Södra, and 51-percent by Norwegian Statkraft. The company’s mission is to identify a cost-efficient technology for profitable large-scale production of second-generation liquid biofuels using forest biomass.

Challenge

• Not enough liquid biofuel.
• There is no production-ready technical solution for liquid biofuels from forest biomass.

Solution

We are building a demo facility in collaboration with Norwegian Statkraft to develop a new method.

Effect

Increase the supply of liquid biofuel in the market.

Biodiesel via SunPine

Challenge

Not enough liquid biofuel, and no production-ready technical solution for advanced liquid biofuels.

Solution

Collaboration with Preem, Sveaskog and the inventor Lars Stigsson in a joint venture.

Effect

• Lower emissions from conventional diesel vehicles.
• Increase supply of liquid biofuels in the market.

The mission of SunPine AB (which is 25-percent owned by Södra) is to use woody biomass from sustainably managed Swedish forests to extract products that enable the transition to a green economy. Tall diesel, rosin and bio-oil are extracted from crude tall oil. Tall diesel is a residual product from Södra’s pulp mills, and is an energy-efficient liquid biofuel with low CO₂ emissions.

Methanol purification in the pulp mill at Mönsterås

Challenge

• The crude methanol in the process contains high concentrations of sulphur and turpentine, and is therefore burnt internally.
• Shortage of bio-based methanol.

Solution

Develop a purification method to produce methanol for chemical use.

Effect

• More resource-efficient
• More liquid biofuels in the market

Most sustainable vessels in the Baltic Sea

Challenge

• No incentives to reduce CO₂ emissions from shipping
• The low interest in change among shipping companies leads to low interest from engine manufacturers to develop alternatives.

Solution

Feasibility study with shipping companies, engine manufacturers and the Swedish Environmental Research Institute (IVL) into how we can achieve the most sustainable vessels in the Baltic Sea.

Effect

• We know that a transition is possible.
• A transition will lead to low emissions of CO₂, NOₓ, sulphur and particles.

Collaboration led to fewer shipments with Project Connect

Challenge

Long-distance truck transportation through Europe.

Solution

Shift the volumes shipped by trucks to an intermodal solution, meaning a combination of rail-road transport, based on collaboration across the entire chain – from purchasing to logistics and market.

Effect

Lower CO₂ emissions due to more efficient rail transport, but also higher delivery precision and cost savings.

Higher freight capacity with new rail wagons

Challenge

Optimise the transportation of pulp.

Solution

In partnership with Kiruna Wagon, Södra Cell Värö has developed a new rail wagon that will eventually replace the wagons that are currently used to transport paper pulp from Värö to the Port of Varberg.

The new wagons have a load length of 20 metres, which is almost twice the length of the current wagons. The whole side can be opened for maximum accessibility and safe loading/unloading.

Effect

The new rail wagons will increase our freight capacity by 25 percent for the same train length, and reduce the need for transport by truck.

Södra is gearing up for climate action

Challenge

You should be able to live wherever you like but still travel to work sustainably. Using public transport to reach our facilities is difficult because they are not located in major cities and means that EVs are not always suitable for employees with long commutes. Using electricity for business travel between our units is also difficult.

Solution

More than 50 charging poles have been installed across our operations, with a total of 112 charging points. This investment in charging poles is unique because Södra’s excess generation is used to charge the vehicles. Green electricity generated locally in our pulp mills. The initiative was made by possible by Klimatklivet (financial support from the Swedish Environmental Protection Agency). Klimatklivet is a government policy initiative for climate-smart investments at local level.

Effect

Made business travel between our facilities with EVs possible, thereby increasing opportunities for fossil-free travel.

Research projects to accelerate the transition to fossil-free transportation in the forestry sector

Challenge

The forest industry currently accounts for about 25 percent of truck transportation in Sweden. Innovation diversity is required to make this transportation fossil-free, and electrification is a vital component.

Solution

Eight organisations (including Södra) have started a joint research project led by the Stockholm Environment Institute (SEI). The project revolves around pods – electric and self-driving trucks developed by Einride, which is an award-winning Swedish start-up specialised in sustainable road freight vehicles.

Another research project, Accelerated transition to fossil-free transportation in the forestry sector, is focused on speeding up innovations to achieve carbon-neutral transportation by 2045. The project will propose new systems and technology combinations that need to be tested in concrete demo projects.

Effect

The research project will lead to conclusions about the technology combinations that can help to accelerate innovation and the forest industry’s transition. The main focus will be to analyse their feasibility and develop a basis for possible demo projects, thereby accelerating the transition to fossil-free transportation.