Investors plan to build a 1 billion euros biorefinery in Estonia

By -


Last week, a group of Estonian investors (see the list at the end of the post) with a long-term forestry and wood industry experience announced its intention of building a modern and environmentally sound biorefinery in Estonia (see press release). With an estimated quantity of 1 billion euro, it would be the largest ever industry investment in Estonia.

Main data and facts about this project are summarized in the following table:
Feedstocks and products
Feedstock and processing capacity
Wood from Estonia (also from Latvia or Lithuania if necessary): spruce, pine and birch. Wood chips produced in sawmills.
3 Mm3 of pulpwood and wood chips.
Products and production capacity
Market pulp and other bioproducts made from cellulose, hemicellulose and lignin, including green energy.
700,000 tons of pulp.
The plant would constantly and stably produce 25% more renewable energy than its own use for the production process.
Schedule
Environmental impact study, applications for environmental permits, public discussions
Starting in early 2017
Investment decision and financing plan
2019
Biorefinery construction, personnel recruitment, training
2020 - 2021
Start-up
2022
Location
Various locations in different parts of Estonia are being analysed. Prerequisites: 100 hectares of land, close to raw materials, operating network of roads and rail, access to a sustainable river water resource and local qualified labour force.
Positive impact on the whole region’s forestry sector as well as on the Estonian economy
Value added created by the bioproducts mill
210 - 270 M€ (1-1,4 % GDP of Estonia in 2015)
Increase of the Estonian export
250 - 350 M€ annually
Employment
200 qualified new direct jobs and in addition 500 – 700 new jobs in the value chain servicing the mill

Figure 1. Model of the bioproducts mill (extracted from www.biorefinery.ee)

Margus Kohava and Aadu Polli (recognized forestry industry experts) lead the biorefinery project. Its feasibility is being analysed in a close cooperation with various Estonian state authorities as well as with well-known scientific experts. Margus Kohava accentuated that the investors would like to have a close cooperation with the public. “It is vital for us to constructively collaborate with all interest groups, scientific communities and potential co-investors to ensure that the mill’s construction, technology and operation would be in accordance with the environmental requirements, be social-economically sustainable and in concord with the interest of the Estonian society” he added.

The investors that initiated the research and analysis stage of the project represent 100% Estonian capital. In case of a positive investment decision, they plan to engage a financial investor and/or strategic investor. It is expected that an international banks syndicate would participate in financing the project. Another possibility is to receive money from the local capital market. Considering the volume of construction works, it is expected to have a foreign and local construction companies to form a consortium for carrying out the civil construction works.

Investors:
- Aimar Varula
- Arvo Türner
- Heiki Vahermets
- Peedo Pihlak
- Toomas Mets and Virko Lepmets (OÜ Combiwood)
- Peeter Mänd (Ivard OÜ)
- Kaido Jõeleht (Kaamos Group)
- Jüri Külvik (Lemeks Grupp)
- Mati Polli (Tristafan OÜ)
- Tiit Nilson (Woodwell)

Advisors:
- Daniel Paalsson (international biorefinery expert)
- Urmas Varblane (consultant of macroeconomic topics)
- Raidla Ellex (law office)
- Estonian Center for Applied Research CentAR
- Communication Consultancy JLP

Popular Posts

Mini-plant for production of glucaric acid from glucose starts up successfully

By -
Image
Recent news about one of the DOE’s 12 Top Biobased Molecules. Rennovia Inc. and Johnson Matthey Process Technologies announced on July 16 that they have successfully started-up a mini-plant for production of glucaric acid from glucose using jointly developed technology. In March 2014, these companies embarked on a collaboration to develop, demonstrate and commercialize catalytic process technologies for the production of bio-based glucaric acid and adipic acid. Under the collaboration, Rennovia and JM Process Technologies work together in processes based on Rennovia’s technology for the catalytic aerobic oxidation of glucose to glucaric acid and the catalytic hydrogenation of glucaric acid to adipic acid. The final goal of the collaboration is to license a package enabling commercial production of these chemical products. The successful operation of this mini-plant is a major milestone in the journey to achieve this goal. The facility is located at the Johnson Matthey Process ...
Read more

Biorefinery models - Lignocellulosic biorefinery

By -
Image
Publication date: 25/04/2016 Last update: 25/04/2016 ABOUT THE SERIES OF POSTS “BIOREFINERY MODELS” This post belongs to a series called “ Biorefinery Models ”. This series is devoted to briefly describe the models or concepts of advanced biorefineries which have emerged in the last few years and that are rising currently. These models are simplified representations which enable us to understand in a simple way the structure and characteristics of a general biorefinery type. Some of these models refer to the type of feedstock while other focus on the technologies involved. A biorefinery may resemble these models or be the result of variations and combinations of them. It should be noted that although these paradigms are very useful and instructive, they show limitations in describing and classifying complex systems with high level of integration. In order to define and describe a specific complex case, the blog recommends use the classification proposed by IEA Bioenerg...
Read more

Hidrotratamiento (HVO) – Conceptos, materias primas y especificaciones

By -
Image
English version Sección: BIOCOMBUSTIBLES AVANZADOS Serie: HVO - Hidrotratamiento (HVO) – Conceptos, materias primas y especificaciones - Hidrotratamiento(HVO) – Ventajas sobre el biodiesel convencional y propiedades - Biorrefinerías de Aceites Vegetales Hidrotatados (HVO) – El auge del diésel renovable - Entradas: HVO                El acrónimo HVO significa en inglés “ Hydrotreated Vegetable Oils ” (“Aceites Vegetales Hidrotratados”) o ” Hydrogenated Vegetable Oils ” (“Aceites Vegetales Hidrogenados”). Clave del proceso: Tratamiento con hidrógeno. En el proceso de producción de HVO, el hidrógeno se usa para eliminar el oxígeno de los triglicéridos produciendo una mezcla de parafinas lineales, CO 2 y agua. Posteriormente, el producto de la primera etapa se isomeriza, siempre en presencia de hidrógeno, para ramificar las cadenas lineales con el propósito de mejorar las propieda...
Read more

Biofuels from algae

By -
Image
In my opinion, the production of biofuels and biobased chemicals from algae is one of the most fascinating topics in the sector of the biorefineries and it will be one of the niches of opportunity with highest potential in the medium and the long terms. This post pretend to be a very basic approach to the topic Algae-to-Biofuels through three general key points. Algae 1,2,3,4,5 Algae include a wide variety of photosynthetic organisms capable of transforming light, water and specific nutrients into products that can be used with commercial and industrial purposes. We can say that algae are sunlight-driven factories with potential to convert CO 2 into biofuels, high-value biochemical, food and feed. There are four algae cultivation technologies currently in use for commercial algae cultivation and proposed for algal biofuel production: extensive or open ponds, intensive or raceway ponds, closed photobioreactors in many designs and closed fermenter systems. Algal biof...
Read more

Biobased acrylic acid

By -
Image
Versión en Español Type of post: Fact sheet. Series: Biobased chemicals – Organic acids. Publication date: 05/05/2021. Last update: 05/05/2021. Description - Organic acid with 3 carbon atoms. - It is a clear, colourless, corrosive liquid with a characteristic acrid or tart smell. - Other names: prop-2-enoic acid. Applications - Formation of homopolymers or copolymers which are used in the manufacture of various adhesives, coatings, diapers, detergents, paints, plastics and textiles. The main use of crude acrylic acid is the generation of acrylate esters, followed by the production of polyacrylic acid, used mostly in superabsorbent polymers. - Chemical intermediate in multiple industrial processes. Conventional petrochemical route - Cracking of fossil naphtha to produce propylene / Oxidation of propylene. Main biobased routes - [3-HPA via] Fermentation of sugars to produce 3-hydroxypropionic acid (3-HPA) / Dehydration of 3-HPA. - [Biobased naphtha via] Cracking of biobased naphth...
Read more