Divisional supplies of energy and other raw materials
In the Fiber and Pulp divisions, energy and other raw materials are significant factors influencing the Lenzing Group’s financial position and performance.
Energy
With its biorefinery concept at its sites in Lenzing (Austria), Paskov (Czech Republic) and Indianópolis (Brazil), the Lenzing Group is one of the pioneers of pulp and fiber production that is resource-conserving and largely self-sufficient in terms of energy. Numerous measures to increase energy efficiency are constantly being advanced at its production sites. Energy reserves at the European locations remain well secured against the backdrop of geopolitical uncertainties.
At an annual average of just under EUR 39/MWh in 2025, gas prices on the Austrian spot market were up by around 10 percent year-on-year. An easing of the supply situation due to higher liquefied natural gas (LNG) supplies only became evident towards the end of the year, with prices falling significantly. Coal prices were down by 11 percent year-on-year. The electricity price recorded the strongest growth with an increase of 21 percent. This was significantly influenced by higher CO2 prices, which rose by 13 percent. By contrast, the average oil price for the year amounted to around USD 68 per barrel, 15 percent below the previous year’s level. Lenzing continues to adhere to the procurement strategy it introduced in 2023. Energy procurement is conducted on the basis of a defined combination of forward contracts and spot market purchases. This strategy compensates for price fluctuations on energy markets and contributes to a more stable cost trend.
Together with energy company Verbund, Lenzing AG has commissioned a new 1.3 MWp photovoltaic plant at the Lenzing site. This increases the total capacity of the PV park to 8.3 MWp. Supplemented by small hydroelectric power plants (2.3 MW) and long-term supply contracts for wind and solar power, Lenzing is further expanding its energy autonomy. These investments form key components of the decarbonization strategy for achieving the scientifically confirmed net-zero target.
A total of 29 energy efficiency projects were implemented at the Lenzing site between 2023 and 2025. The resultant heat savings of around 265,000 GJ per year and electricity savings of around 7,000 MWh per year correspond to the annual energy requirements of around 4,350 Austrian households. These measures will have a positive impact on the energy cost structure and reduce the carbon footprint of the Lenzing site by approximately 10,500 tons of fossil CO2 per year.
In December 2025, Lenzing AG and Energie AG Umwelt Service renewed their RVL (Reststoffverwertung Lenzing) partnership until 2040. The new “R/25” framework agreement reinforces the long-standing and successful cooperation in residue utilization at the Lenzing site. The agreement secures higher performance and availability of the fluidized-bed system, a retrofit program scheduled for 2026/27, and clear rules governing emissions costs. In addition, it provides long-term planning certainty, with the first possible termination date set for December 31, 2040. The RVL remains a cornerstone of supply security and climate protection: more than 300,000 tons of waste are converted annually into electricity and steam, replacing up to 85 mn Nm3 of natural gas and thereby representing a significant contribution to decarbonization and the circular economy. The project to construct a new fluidized-bed boiler at the Lenzing site was further advanced during the reporting period. The objective is to substitute conventional fossil fuels and reduce emissions. Construction is scheduled to commence in the third quarter of 2026.
The energy facilities in Lenzing as well as at the Paskov and Heiligenkreuz (Austria) sites operated under normal conditions during the reporting period. At Heiligenkreuz, the transition to biogenic fuels was deliberately advanced in order to sustainably reduce energy costs and further improve the site’s economic viability.
At the Paskov site, surplus energy continued to be fed into the public grid. Natural gas prices at the Paskov site recorded a slight increase, whereas natural gas prices in Grimsby (UK) decreased. In Mobile (USA), natural gas prices rose slightly, while a modest decline in electricity prices was recorded.
At the Purwakarta site (Indonesia), the energy facilities were operated with high availability. The price of coal fell moderately, while the price of electricity remained more or less the same.
At the Chinese site in Nanjing, gas prices declined significantly due to a new supply contract. The operation of two gas turbines commissioned in 2024 contributed to further diversification of energy supplies. Electricity prices remained stable.
A contract for the supply of liquefied natural gas (LNG) instead of heating oil is currently being implemented at the Indianópolis site in Brazil. Supply is expected to start in the first quarter of 2026.
At Prachinburi (Thailand), electricity prices remained stable year-on-year.
Other raw materials
In 2025, the chemical markets relevant to Lenzing recorded predominantly stable prices. On average, Lenzing’s chemical costs were in line with budget.
Caustic soda
Caustic soda is used in the production of dissolving wood pulp and is also an important primary product for the production of viscose and modal fibers. It arises as a byproduct from chlorine production. After initially increased prices in the first half of the year due to strong demand, markets stabilized in the final two quarters of the year, which was also partly reflected in lower prices.
Sulfur
Sulfur is an important starting material for the production of carbon disulfide and sulfuric acid. In turn, both raw materials are used in the viscose process. Due to a tightening of sulfur supply, prices increased significantly over the course of the year across all regions.