The mill annually produces 265,000 tonnes of FSC-accredited G-Print, a contour coated woodfree paper, of which 93% is exported out of the country, mainly into Europe.

Maria Norrfalk, Sweden's county governor of Dalarna, inaugurated the plant on 18 June. She said: "This investment is about a true energy changeover, from fossil to renewable sources.

"The owners of the mill are clearly demonstrating their commitment to creating a reduced environmental impact though switching to a sustainable energy source."

The company's bio-fuel system reduces carbon dioxide emissions by more than 30%, according to Mikael Frölander, managing director of Grycksbo Paper.

He said: "Our environmental work is an important part of our brand. With the bio-fuel boiler in operation, we have left oil behind as an energy source and our energy requirements are now totally fulfilled through the use of renewable sources."

Grycksbo Paper's turnover is SEK1.7bn and it employs about 500 staff.