• Biofactory in Navia: The modernization of the wood park and the replacement of natural gas with biomass in the lime kilns will improve its production cost by eight million euros per year.
• Biofactory in Pontevedra: The company is working on the Pontevedra Avanza plan, which will enhance productivity and cost reduction, improving and diversifying special cellulose.
• Energy: Through its renewable subsidiary, the construction of three additional thermal energy projects for industrial clients in Spain will begin in 2025. Additionally, the company has taken a step forward in its strategy to promote Spain’s energy independence with the acquisition, in December 2024, of a biogas plant that will diversify into the fertilizer business.
• Biogenic CO2: The company is working on CO2 capture engineering, green hydrogen production, and the synthesis of both components into renewable fuels for maritime and air transport.
Ence held its General Shareholders’ Meeting on April 3 in Madrid, where all proposed agreements on the agenda were approved.
The company, as indicated by its president, Ignacio Colmenares, continues to advance towards the goal of being “a strategic vector for energy independence through decarbonization.” In this regard, he emphasized that “sustainability is synonymous with competitiveness” and stressed the purpose of “being profitable and creating value for shareholders and for society as a whole.” All of this, as he clarified, “through the two business units of the company: Cellulose and Energy.”
Boosting Competitiveness
The president of Ence reported on the decarbonization and cost reduction project in Navia, which will enhance the company’s competitiveness. Thus, the modernization of the wood park and the replacement of natural gas with biomass in the lime kilns will reduce Scope 1 emissions from the biofactory by 60% and improve its production cost by eight million euros per year.
Regarding the renewable business, Ignacio Colmenares explained that “our commitment to energy independence is based on decarbonization and cost reduction in the industry in our country.” In this sense, he highlighted that, through Magnon Servicios Energéticos, “we have signed two contracts to supply steam generated from biomass to the food industry, replacing facilities that consume fossil fuels.”
Milestones in 2024
The president of Ence reviewed the milestones of the 2024 fiscal year, which concluded with a profit of 32 million euros and an EBITDA of 164.5 million euros, nearly 90% more compared to 2023. He also noted that “we have rewarded our shareholders with dividends amounting to 34 million euros, representing a return of 5%.”
Regarding advances in the company’s businesses, he reported that “our special Ence Advanced products, which differentiate us and offer greater added value to our customers, accounted for 23% of total cellulose sales in 2024.” In Energy, he highlighted that “we have taken a step forward with the acquisition, in December 2024, of a biogas plant in Tarragona, which we will diversify into the biofertilizer business.”
Outlook for 2025
Focusing on the company’s evolution for 2025, he noted that in the Pulp business, “we are becoming a specialty pulp manufacturer. Sales of Ence Advanced products will reach 30% in 2025 and 50% in 2028.” Additionally, and following the start-up of the first fluff pulp line in the last quarter of 2025, “the sum of all specialty pulps in 2028 will exceed 62% of the company’s pulp sales.”
Regarding the As Pontes bioplant project for the production of recycled textile and paper fibers, the company continues to make progress in the engineering and administrative procedures. “This project represents a clear commitment to the circular economy and competitiveness, as recovered paper, cardboard, and textiles will be used as raw materials instead of wood, with minimal water consumption,” noted the president of Ence.
In the area of energy, he mentioned new advances in renewable thermal energy with the construction of three more projects and “developing our pipeline for industrial clients in Spain.” Added to this are important advances in biofertilizers and biomethane. “We have a solid portfolio of projects in the environmental pipeline with secured locations and completed feasibility studies.” Regarding biogenic CO2, he noted that its use “represents a great opportunity today. The Ence Group has the capacity to take advantage of it, as it produces more than four million tons, 50% of which is produced in Spain, concentrated in strategic locations close to ports and refineries.”
