SCA to Establish New Renewable Energy Reporting Segment
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SCA said that it will introduce a new reporting segment — Renewable Energy — from January 1, 2023. The decision is in line with SCA's stated ambition to grow and realise business opportunities in the renewable energy sector.
SCA is one of Europe's leading renewable energy producers. Twenty per cent of Sweden's wind power capacity is installed on SCA's land, and through the use of residual and by-products from its forestry activities, SCA has grown to become one of Europe's top producers of sustainable bioenergy.
SCA has previously stated its intention to continue to grow in the energy sector through investment and organic growth. In 2021, SCA announced plans to invest together with Finnish energy company St1 in a new biorefinery in Gothenburg to produce biofuels.
"We see growth opportunities in the renewable energy sector, where we have announced plans to grow our presence in wind power and bio-based energy. Our ambition is that renewable energy will be a long-term value driver for SCA," says Ulf Larsson, President and CEO.
SCA's REPORTING SEGMENTS
Renewable Energy
The Renewable Energy segment will include the production and sale of refined and unrefined biofuels and biofuels. It will also include development costs and revenues linked to the wind power business as well as sales of green by-products from industry for energy production.
Forest
The Forest segment comprises the supply of raw materials for SCA's forestry activities as well as the management and felling of privately owned forest land of 2.6 million hectares in northern Sweden and the Baltics. It also includes the purchase of timber from other forest owners and the transport of timber to SCA's industrial operations.
Activities in renewable energy linked to forest land, including wind power leases and the sale of unprocessed biofuels from forest land for energy generation will be reported in the Forest segment until January 1, 2023 and in the Renewable Energy segment thereafter.
Wood
The Wood segment comprises the sawmill business with five sawmills in northern Sweden and wood processing and distribution to the construction trade in Sweden and France.
Sales of refined biofuels made from residual products from sawmills, mainly pellets, will be reported under the Wood segment until January 1, 2023 and in the Renewable Energy segment thereafter.
Pulp
The Pulp segment includes the production and sale of northern bleached softwood kraft (NBSK) and chemi-thermomechanical pulp (CTMP) that are produced at our pulp factory in Östrand, which is also a net producer of green energy and by-products such as tall oil and turpentine.
Sales of tall oil, a by-product of pulp production, will be reported under the Renewable Energy segment from 1 January 2023.
Containerboard
The Containerboard segment manufactures and sells packaging paper (kraftliner), with production taking place at our integrated paper mills in Obbola and Munksund.
Sales of tall oil, a by-product of pulp production, will be reported under the Renewable Energy segment from 1 January 2023.
