Papier- und Kartonfabrik Varel (PKV) has received approval for special climate protection funding from Germany’s Federal Ministry for Economic Affairs and Energy and the state of Lower Saxony, supporting its roadmap toward CO₂-free paper and board production by 2045.
The funding, granted under the Federal Industry and Climate Protection Program (BIK), will cover up to 22% of the project costs, capped at €30 million, subject to successful implementation. It will support the planned deployment of large-scale industrial heat pumps and a high-temperature heat storage system, with initial installations targeted from 2029.
Federal and regional officials described the project as evidence that decarbonization and industrial competitiveness can advance in parallel, positioning PKV’s initiative as a potential model for other energy-intensive paper producers. Company shareholder Kristian Evers welcomed the decision, calling climate neutrality a regulatory, ecological, and economic necessity.
PKV cautioned, however, that long-term success will also depend on a supportive regulatory framework, particularly competitive access to green electricity and grid cost relief. Despite remaining uncertainties, the company said it is moving ahead with planning, including the development of a new high-capacity grid connection to support the energy-intensive technology.
Papier- und Kartonfabrik Varel (PKV) is a German paper and board producer based in Varel, Lower Saxony. The company manufactures paper and cardboard products for industrial and packaging applications and operates energy-intensive paper machines. PKV is actively pursuing decarbonization initiatives, including the use of large-scale industrial heat pumps and energy storage, to achieve climate-neutral production by 2045.
Source: PKV
