The plant will supply biofuel for the new kiln and for external sales using raw material from the sawmill at Värö, which with increased production is providing additional sawdust and shavings.

"At Värö we have access to raw materials in the form of shavings and the energy to dry the shavings to form pellets. This means we have everything in place to provide cost-effective production of a highly processed biofuel," said Södra Cell president Gunilla Saltin.

The pelleting plant and kiln will be commissioned by the end of next year.