St1 announces its plans for a new cellulosic ethanol project in Pietarsaari and the expansion of the Kaajani plant
Cellunolix® is a platform, registered
by St1, which utilizes saw dust from soft wood
as feedstock to produce cellulosic ethanol. That Nordic energy company is
seeking locations for new plants based on this technology in its operating
countries. In August, the blog reported that the plans to construct a
Cellunolix® ethanol plant in Norway were progressing well (see post).
Yesterday, St1 announced that NEB (North European Bio Tech Oy, joint venture of
St1 and SOK) has intention to build a
50-million-litre Cellunolix® bioethanol plant in Pietarsaari (Finland). In the
same press
release, confirmed that NEB will look into expanding the soon to start Kajaani
plant.
The Pietarsaari project
Acting on behalf of North European
Bio Tech Oy (NEB), St1 has begun the analysis and signed letters of intent with
Alholmens Kraft and UPM on a sawdust-based ethanol plant in the
Alholma industrial area in Pietarsaari. The project is estimated to be in the
investment decision stage in 2018 and the plant could start up in 2020. In
order for the investments to be implemented and the project to proceed, an
environmental impact assessment procedure (EIAP) and an approved environmental
permit will be required. Moreover, the profitability and operational experience
of the Kajaani plant will affect investment decisions. Its production capacity would
be leased to North European Oil Trade Oy
(NEOT), associated company of SOK and St1.
Figure 1. UPM Pietarsaari mill (extracted
from UPM web page). The mill site also houses UPM's Alholma sawmill, Alholmens
Kraft power plant and UPM's wood procurement offices. The new Cellunolix® plant
will be located in the Alholma industrial area.
St1 Biofuels Oy will plan and
deliver the plant, coordinate the project and, as the operator, carry out
production. Alholmens Kraft and UPM would provide the project with the mill
site´s services and commodities and, where possible, would utilise the
by-products of the ethanol production in their own processes.
The Pietarsaari project would have
an important employment impact. In the planning and implementation phase, it would
be approximately 500 man years. Upon completion, the bioethanol plant would
employ permanently 25 people in uninterrupted shift work and indirectly
approximately 70 people in, among other areas, logistics and maintenance.
Kajaani expansion plans
St1 is currently taking into use the
10-million-litre Cellunolix® plant that it delivered to NEB in Kajaani. The
plant, which manufactures advanced ethanol from sawdust, will reach full
production speed during 2017. Along with the letters of intent concerning
Pietarsaari, NEB will look into expanding the Kajaani plant. One option also
being considered is the construction of a new Cellunolix® bioethanol plant with
an annual capacity of 50 million litres. The assessment of the environmental
impacts will be completed at the beginning of 2017.
