Swiss Sawmill Turns Wood Waste Into Heat for Hundreds of Homes

A family-run sawmill in the Swiss Alps has found a new way to turn wood waste into warmth for local homes. Kälın Sawmill in Euthal, now in its sixth generation, faces rising costs and supply shortages but has expanded into district heating. The project shows how alpine businesses can adapt while using local resources more efficiently.

For over a century, Kälın Sawmill has processed spruce from the forests around Euthal into crates and pallets. More than 90 percent of its timber comes from these slopes, where steep terrain makes logging difficult. Workers often rely on cranes to lower felled trees, adding to labour and transport costs.

Wood prices in Switzerland have hit a ten-year high, pushing up expenses for the sawmill. Swiss lumber is already more expensive than imports, but the bigger problem is supply—domestic production cannot keep up with demand. Experts estimate that sustainably harvesting an extra million cubic metres of timber could help close the gap.

To offset these challenges, the sawmill now burns sawdust and offcuts to generate heat. Its district heating plant already supplies over twenty homes, with plans to reach 500 households by the end of 2027. The Swiss Alpine Aid organisation has supported the project with 2.5 million CHF in funding and guidance on cutting CO₂ emissions.

The initiative serves as a model for other alpine businesses looking to diversify. By repurposing waste, Kälın Sawmill reduces costs while providing a local energy solution. Yet financial pressures remain, and the company may soon need to raise prices for its customers.

The heating project has doubled as a lifeline for Kälın Sawmill amid rising wood costs and limited supply. With further expansion planned, it could soon warm hundreds of homes while cutting waste. For now, the sawmill continues balancing tradition with innovation in Switzerland's demanding timber market.