The pulp and paper industry faces several challenges linked to climate and environmental impact, resource efficiency, rising energy prices, increased competition for biomass resources, and declining demand for traditional printed paper products. However, these challenges also offer strategic opportunities for the industry to develop into a competitive, resource-efficient, and low-carbon industry in line with a biobased economy. Against this background, this paper aims to analyse current energy strategies in the pulp and paper industry in Sweden. Specifically, the paper analyses how companies combine continuous process efficiency to reduce energy costs with activities that could be developed into new energy-related products to increase revenue. Most of the analysed companies work to various degrees with both these strategies, employing methods that include improving energy efficiency, energy security, and energy conversion, as well as developing a wide range of biobased energy products. However, our study indicates that there is an untapped potential associated with energy product development, and we conclude that energy efficiency measures can free up resources, enabling the development of new energy products. Finally, several potential managerial outcomes and implications are outlined. © 2021 The Authors