Vattenfall inaugurates new pellet-powered heat plant
In Sweden, Vattenfall Heat, a subsidiary of energy major Vattenfall Group, together with the Municipality of Vänersborg has held an opening ceremony for "Lignum", Vattenfall’s new wood pellet-fired district heating plant in Vänersborg.

Vattenfall’s heating plant in Vänersborg has been completely fossil-free in its production since 2021, when fossil oil was replaced by bio-oil in the oil-fired boilers.
The plant has been expanded to meet the demand for district heating with two new boilers for wood pellets, which are made using residual products from the forest industry.
The new and modern heating plant is named “Lignum”, Latin for “wood,” while an increased need for a diversified fuel mix with domestic raw materials ensures fuel availability and fossil-free heat production.
Vattenfall has invested just over SEK 150 million (≈ EUR 13.5 million) to meet new needs for connection to the district heating network and, of course, to further increase the security of supply to our customers. The new heating plant complements the current plant and produces approximately 10–15 percent of the total heat supplied, said Henrik Aleryd, Plant Manager for Vattenfall’s heating plant in Vänersborg.
A circular economy and energy efficiency example
Vattenfall has supplied district heating to Vänersborg for three decades. A local circular and energy-efficient heating system where most of the approximately 160 GWh per annum of heat consists of residual heat from the local industry, Vargön Alloys.
Vargön Alloys produces ferroalloys for stainless steel, and the process generates large amounts of excess heat that is recovered via exhaust gas boilers connected to the district heating network.
The new 18 MW pellet-fired boiler plant provides peak load and serves as a backup for Vattenfall’s heating network.
By taking care of the surplus heat from Vargön Alloys, together with its district heat production, Vattenfall can supply approximately 10,000 households in Vänersborg with completely fossil-free heat.
District heating has an important role to play in the energy transition and for the Swedish energy system. In 2025, our goal is for all of our heating plants to be fossil-free in their fuel use, as the Vänersborg plant is. District heating is a safe, circular, and long-term secure energy solution for our customers, said Lovisa Fricot Norén, Head of Vattenfall Heating Sweden.
Proven technology and supplier
Specialist thermal energy solutions provider AKJ Energiteknik AB was contracted for the new heat plant.
The scope of supply included the design, manufacture, installation, and commissioning of two redundant boiler lines with fuel handling, furnace, hot water boiler, flue gas purification with electrostatic precipitator, mechanical, piping and electrical installations, and control systems.
The furnace is an advanced combustion system developed by AKJ Energiteknik with a movable grate system for dry biomass fuels and optimized to maximize operational availability and control range.
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