August 11, 2026 / Innovations, Mercer Stendal, Sustainability Mercer Stendal reduces fossil CO₂ emissions Mercer Stendal is investing €34.6 million to convert its lime kiln from natural gas to biomass-based fuel. Based on current engineering estimates and normal operating conditions, the project is expected to reduce the mill’s reported Scope 1 greenhouse gas emissions by approximately 58,000 tonnes of CO₂ equivalent annually. Phased commissioning is scheduled to begin in the second half of 2027, with the first full-year emissions benefit expected in 2028. Mercer Stendal, a subsidiary of Mercer International Inc., is converting the fuel supply for the lime kiln at the Arneburg pulp mill in Germany. With a total budget of 34.6 million euros, the lime kiln, which is currently operated with natural gas, will be converted to biomass firing. The lime kiln is part of the chemical recovery cycle in pulp production. In the 107-meter-long rotary kiln, lime slurry is reactivated into quicklime at temperatures exceeding 1,000 degrees Celsius. The process has been powered by natural gas to date; the combustion capacity is approximately 45 megawatts. The lime kiln currently accounts for about 86 percent of the site’s fossil CO₂ emissions. By replacing natural gas with biomass, Mercer Stendal expects to reduce the plant’s fossil CO₂ emissions by approximately 85 percent. According to current plans, this corresponds to a reduction in Scope 1 emissions of approximately 58,000 metric tons of CO₂ equivalent per year. In addition to the new burner technology, the project also includes modifications to the flue gas cleaning system. In collaboration with project partners Andritz and SHW, two new heat exchangers, a fabric filter, and an SCR catalyst, among other components, will be installed. These components are designed to reduce emissions of dust and nitrogen oxides (NOx). The project is receiving a grant of 17.2 million euros from the Federal Ministry for Economic Affairs and Energy. Following the completion of the engineering phase in 2025, civil engineering work began in April 2026. Installation of the new plant components is scheduled to begin in March 2027. The plant is expected to go into operation in phases starting in August 2027. In 2028, Mercer Stendal expects to largely replace the lime kiln’s current natural gas consumption during normal operation, thereby also reducing fossil CO₂ emissions. The operation of the new plant is expected to create two additional jobs at the site. The investment supports Mercer International’s goal of reducing Scope 1 GHG emissions intensity by 50 percent per tonne of pulp by 2030 (from a 2019 baseline), and is expected to reduce the fossil fuel emissions intensity of pulp produced at the Stendal site. About Mercer Stendal Mercer Stendal, based near Arneburg in Saxony-Anhalt, produces bleached softwood kraft pulp (NBSK) and generates electricity as part of its operations. Annual production capacity is approximately 740,000 tonnes, and electricity generation capacity is approximately 148 megawatts. Mercer Stendal employs approximately 500 people. For more information, visit mercerint.com. About Us Mercer International Inc. is a global forest products company with operations in Germany, the USA, and Canada. Its consolidated annual production capacity is 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of CLT, 45 thousand cubic meters of glulam, 17 million pallets, and 230,000 metric tonnes of biofuels. For more information about the company and to read the full report, please visit its website at www.mercerint.com. The preceding includes forward-looking statements, which involve known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from forecasted results. Words such as “expects”, “anticipates”, “are optimistic that”, “projects”, “intends”, “designed”, “will”, “believes”, “estimates”, “may”, “could” and variations of such words and similar expressions are intended to identify such forward-looking statements. Among those factors which could cause actual results to differ materially are the following: the highly cyclical nature of our business, raw material costs, our level of indebtedness, competition, foreign exchange and interest rate fluctuations, our use of derivatives, expenditures for capital projects, environmental regulation and compliance, disruptions to our production, market conditions and other risk factors listed from time to time in our SEC reports.