Spanish renewable energy company Ence reported higher biomass power generation in 2025, even as lower pulp prices led to an annual loss, Bioenergy Insight reported.
The company produced more than 1,240 gigawatt-hours of electricity from biomass during the year, an increase of six per cent compared to 2024. Growth continued in the second half of the year, when the business generated €20 million in earnings before expenses, pointing to an annual rate of €40 million. In the fourth quarter alone, output reached 346 GWh, up ten per cent from the same period a year earlier.
Ence, which operates the largest biomass-based renewable energy platform in the Iberian Peninsula, is also expanding into new areas. It is currently working on 25 biofertiliser and biomethane projects that are in advanced planning and approval stages. In addition, the company has signed three contracts in its industrial heat business, with a fourth project now in the start-up phase.
Despite the progress in renewable energy, the company reported a net loss of €55 million for the year. This included a €24 million charge linked to a restructuring plan that will reduce its pulp workforce by 15 per cent. The loss was mainly caused by a sharp drop in cellulose prices, which averaged $1,086 per tonne in 2025.
The company said market conditions appear stronger for 2026. Prices have already risen to $1,250 per tonne, and major producers have announced further increases to $1,330 per tonne.
Ence is also shifting its focus towards higher-value pulp products. By the end of 2025, specialty pulp made up 30 per cent of total pulp sales, up seven percentage points from the previous year. These products generated €37 more per tonne than standard pulp. The company aims to increase the share of specialty grades to more than 62 per cent by 2028.
A key development in this strategy was the launch of the first fluff pulp production line at its Navia facility in the fourth quarter of 2025. The plant has an annual capacity of 125,000 tonnes. With this move, Ence has become the only producer in Europe of eucalyptus-based fluff pulp, targeting the continent’s hygiene products market as a lower-cost alternative to imported material.
The company also reported improved cost control. Production costs fell to their lowest level since 2022, closing at €483 per tonne. This represents a saving of €10 per tonne compared to 2024 and €70 per tonne compared to 2022. Two additional cost-reduction initiatives are underway, aiming to cut expenses by a further €30 per tonne between 2026 and 2027.
At the end of the year, Ence’s net financial debt stood at €378 million, up from €321 million in December 2024.
