New Bioethanol Plant in Finland
- The bioethanol plant in Kajaani will cost EUR 40 million, with 30% subsidized by the Ministry of Employment and the Economy.
- Construction starts in summer 2015, with production beginning mid-2016.
- The plant will produce 10 million liters of bioethanol annually from local sawdust.
- The project aligns with Finland's goal of 20% renewable energy in transport by 2020.
Investment and Construction
North European Bio Tech Oy (NEB) has decided to build a bioethanol plant in Kajaani, Finland, using local sawdust as raw material. St1 Biofuels Oy will handle design, permits, coordination, and operation. Construction starts in summer 2015, with production expected by mid-2016. The plant's annual capacity is 10 million liters of bioethanol, leased to North European Oil Trade Oy (NEOT).
Strategic Importance
NEOT, a major fuel procurement company in the Baltic Sea region, emphasizes the importance of producing ethanol from waste and residue to meet biofuel mandates. Sawdust and wood waste are seen as significant ethanol sources in Finland and other Nordic countries.
Environmental Impact
The plant supports Finland's climate strategy by reducing reliance on imported fossil fuels. The national goal is to achieve 20% renewable energy in the transport sector by 2020. Ethanol from waste and residue is nearly carbon-neutral and used in high-blend ethanol fuel for flex-fuel vehicles and as a biocomponent in petrol.
Technological and Commercial Significance
The Cellunolix® plant represents a major technological and commercial step for St1 Biofuels. The sawdust-based ethanol production concept has high export potential and can be scaled up to produce 50 to 100 million liters annually.
Employment and Economic Impact
The project involves a total investment of EUR 40 million, with 30% covered by a subsidy from the Ministry of Employment and the Economy. Upon completion, the plant will directly employ 15-20 people and indirectly employ about 15 more. During development, planning, and construction, the project will generate approximately 200 person-years of employment.