The European Investment Bank (EIB) said it will lend €100 million to Swedish forest-industry group Holmen to expand its renewable energy generation.

The financing will support the ongoing expansion of onshore wind installations in northern Sweden, strengthening the country’s clean-energy supply and reducing greenhouse gas emissions.

Headquartered in Stockholm, Holmen is one of Sweden’s largest forest owners and a key player in renewable materials and energy.

The company operates in forestry, wood products, paper, paperboard and energy. Its renewable and recyclable products help replace fossil-based materials such as plastic, steel and cement.

The EIB said: “Holmen’s investment will add renewable generation capacity in Sweden’s northernmost bidding zones (regional electricity price areas), where energy demand is expected to increase from fast-growing, electricity-intensive industries.

“The expansion of wind power will increase the regional energy production and contribute to Sweden’s goal of achieving net-zero greenhouse gas emissions by 2045.”

EIB Vice-President Karl Nehammer said: “Sweden has long been a leader in renewable energy and sustainability.

“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.”