Local Investment Programmes in Sweden Pulling the pulp and paper industry to profitable investments A study of four bioenergy projects in the Swedish pulp and paper industry

Switching from oil to biofuels appears to be good business for the Swedish pulp and paper industry today. Mixing traditional wood fuels with sludge residues makes the transition even more profitable. Public financial support of 159 MSEK has pulled the four pulp and paper industries studied in this thesis to invest another 538 MSEK, creating annual cost savings of 150 MSEK per year. This thesis shows that bioenergy investments in the pulp and paper industry are considerably profitable today even without subsidies due to the increased prices on oil and electricity and a strengthened waste policy. The Swedish Local Investment Programme has supported the introduction of new technology and achieved significant reductions of carbon dioxide emissions at a low socio-economic cost. In addition 160 000 annual tonnes of sludge previously being disposed is now used for energy production substituting about 23 000 m3 of oil per year