The construction of the pyrolysis plant of Green Fuel Nordic Oy in Lieksa receives green light
Type of post: NEWS.
After years of planning, the biofuel production
plant of Green Fuel Nordic Oy in
Lieksa will soon be a reality. The project has now amassed the required funding
and the company's board of directors has made the decision to order the
construction of the plant. In addition to the funding, legislation changes
regarding the blending mandate also impacted the confirmation of the
investment.
Press release: “Major Regional
Investment in Lieksa”, 22/3/2019.
Figure 1. Logo of Green Fuel Nordic Oy
Location
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Lieksa (Finland).
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Investment
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- The
first phase of the investment is worth approximately 25 M€.
- Future
plans involve gradually building additional production units.
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Feedstocks
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- Effluents from the forestry industry (sawdust
from saw mills and crown trunks).
- Wood from first thinning.
The raw material to be fed into the plant
also partially will work as an energy source for the production process.
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Products
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- Wood-based bio-oil. It can be used for
heating and transport fuel in place of light fuel oil, as well as raw
material for chemicals and plastics.
- Ashes. They can be used as fertiliser.
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Technology
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Pyrolysis.
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Employment
effect
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The first
phase will bring a hundred new jobs (including indirect employment) to the
Lieksa area. Future plans will increase the total effect to several hundred
new jobs.
|
Start-up
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Commercial
operation could commence in the year 2020.
|
The project is backed by North Karelia-based
venture capitalists: Joensuun Kauppa ja Kone Oy, represented by Kyösti Kakkonen
(29.9%); Deeputi Oy, represented by Matti Virtaala (approx. 18%) and Arto
Hartikainen (approx. 18%). The total ownership and guarantor liability amount
of these majority shareholders is approximated at 10 M€. In addition, the North
Karelia ELY Centre is funding the construction with a contribution of 7 M€. Timo
Saarelainen (Green Fuel Nordic Oy CEO) is also involved in an ownership role
with a share of approximately 11%.
The city of Lieksa has invested a total of
approximately 2.8 M€ in the development of the biorefinery and terminal area (partially
through EU project funding). The city of Lieksa will continue the completion
work in the area in the early summer, with the asphalting of the bioterminal
and the construction of the Talttatie road leading to the area. An industrial
spur line is also planned for the area.