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Technical Side
Södra to Sell Green Electricty to Members and Employees
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Vaxjo, Sweden, 16 October 2008 -- The board of Södra today decided that Södra will start selling green electricity to its members and employees. This groundbreaking step for the Group means that Södra owners can for the first time supply themselves with electricity from their own forests.

In the initial phase, Södra will sell electricity produced at its pulp mills. Södra is currently Sweden's biggest producer of green electricity from biofuel with an annual production of 1.8 TWh. Electricity deliveries will later be complemented with electricity from wind turbines. Södra plans to build some 300 wind turbines on its own land and on that of its members.

"Production of electricity and other energy is becoming increasingly significant to Södra. The growing volumes mean we're now ready to step fully into an industry that is to some extent new to us," says Södra CEO Leif Brodén.

In mid-November, Södra's 52,000 owners and 3700 employees will receive an offer to subscribe to electricity from Södra. The offer will have clear and simple conditions and a competitive price. Delivery will commence on 01 January 2009.

Södra has an annual production capacity of 1.8 TWh of green electricity. The Group also sells over 3 TWh pellets and chips to thermal power stations and some 0.3 GWh to district heating grids.

Södra is a Swedish group with broad forestry operations and is a leading producer of pulp, wood products, and bioenergy. The company, which is owned by 52,000 forest owners in southern Sweden, has 3700 employees and sales of SEK 18 billion.

Source: Södra



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