Plans for a forest biorefinery in Kemijärvi have moved a step closer to final implementation

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Type of post: NEWS IN BRIEF.

Boreal Bioref Oy (Boreal) has plans to build a bioproduct mill in Kemijärvi (Finland). The biorefinery will process 2.8 million m3/year of thinning wood and wood chips and generate 500,000 tons of biomaterials and biochemicals per year. Boreal and China CAMC Engineering Co., Ltd. (CAMCE) signed a mutually binding EPC contract related to the new plant in April last year (see “China CAMCE will build the biorefinery of Boreal Bioref in Finland”, 10/4/2017).

The plans to construct this biorefinery in Kemijärvi have moved a step closer to implementation with the signing of a detailed letter of intention of investment between Shanying Investment Management Co., Ltd. (Shanying) and Boreal (see press release, 29/3/2018). Shanying aims to become the majority owner of Boreal, buyer of the pulp and other bioproducts as well as an operative partner.

Figure 1. Model of the forest biorefinery in Kemijärvi (extracted from the press release)

Boreal has been negotiating with Shanying since November 2017 and the companies have organized mutual visits both in Kemijärvi and in China. Negotiations have been conducted in close cooperation with CAMCE. Shanying is the third largest producer of packing paper and cardboard in China, and a major player in the international market, owning companies in Europe, United States and Japan.

Pending the final investment decision, the completion of the environmental permit process and all financial agreements, the construction of the biorefinery could begin this summer and is scheduled to be completed by the end of 2020. Boreal submitted an environmental permit application to the Regional Authority of Northern Finland (PsAVI) at the end of August 2017. The city council of Kemijärvi approved the town plan for the industrial area on March 5, 2018.

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