The European Investment Bank (EIB) will lend SEK 1.1 billion (around €100 million) to the Swedish forest-industry group Holmen to support the expansion of its onshore wind power generation in northern Sweden. The project aims to strengthen the country’s supply of clean electricity and contribute to its long-term decarbonisation goals.

Headquartered in Stockholm, Holmen is one of Sweden’s largest forest owners and a key producer of renewable materials and energy. The company’s operations span forestry, wood products, paper, paperboard and power generation, with a strong focus on renewable and recyclable products that help reduce reliance on fossil-based materials such as plastic, steel and cement.

The new investment will add renewable power generation in Sweden’s northernmost electricity bidding zones, where energy demand is expected to rise significantly due to the rapid growth of energy-intensive industries, including green steel and battery manufacturing. Increasing wind capacity is seen as crucial to ensuring stable and affordable electricity supply in the region.

“Sweden has long been a leader in renewable energy and sustainability,” said EIB Vice-President Karl Nehammer. “By financing Holmen’s expansion of clean power generation, we are strengthening Europe’s energy resilience while supporting one of the country’s most sustainable industrial players. This investment shows how the green transition and industrial competitiveness can go hand in hand.”

The operation contributes to Sweden’s national target of achieving net-zero greenhouse gas emissions by 2045 and forms part of the EIB’s broader climate action and sustainable energy strategy. It also supports the European Commission’s RePowerEU initiative, which seeks to accelerate the shift to renewable energy sources and reduce dependence on imported fossil fuels.

The EIB Group – which includes the European Investment Fund (EIF) – signed nearly €89 billion in new financing in 2024 for more than 900 high-impact projects across sectors such as climate action, digitalisation, defence, cohesion and innovation. All projects financed by the institution align with the Paris Agreement, as outlined in the EIB’s Climate Bank Roadmap.