KaiCell Fibers biorefinery project has a very remarkable impact on regional economy and employment

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Type of post: NEWS IN BRIEF.

KaiCell Fibers is a joint venture created by the regional council of Kainuu and NC Capital Partners with the aim of building a modern pulp and bioproducts plant in Kainuu region of Finland. In early 2017, the Blog reported that the venture had begun the feasibility study for its future biorefinery. The biorefinery concept was made up of three distinct parts: A state-of-the-art chemical pulping line; A bioproduct unit, producing a major volume novel fibre; An innovation driven bioecosystem entity, where multiple players can derive benefits from the by-products of the two above plants.

Figure 1. KaiCell Fibers Ltd has signed a preliminary agreement with the Paltamo municipality on terms of the mill site area purchase (photomontage with images taken from Kaicell Fibers website)

Some recent advancements on the development of the project have been disclosed in a press release of the company:
- Pöyry Finland Ltd has completed a survey on socio-economic impacts of KaiCell Fibers’ biorefinery. It will have a significant economic influence in the province of Kainuu and for Finland:
Impact on the total output of: Finland / Kainuu region
Close to 1,000 M€. / Over 700 M€.
Employment indirect effects when the mill is operational in: Finland / Kainuu region
Almost 2,000 jobs. / 1,190 jobs.
Employment effect of the construction period in Finland
6,400 person-years.
Increase on gross product of Finland / Kainuu region
About 0,2%. / 12 %.
– KaiCell Fibers has signed a preliminary agreement with the Paltamo municipality on terms of the mill site area purchase on 9th of April. The plot of land was acquired for this purpose by the Paltamo municipality in summer 2016.
- The company has submitted an environmental permit application to the Regional Administrative Office of Northern Finland (AVI) in November 2018. It is expected that the environmental permit could be granted during this year.

Initially, the start-up of the production was planned to commence in 2020. Obviously, it is a difficult target to reach taking into account that the environmental permit is still under revision and the preliminary agreement for the purchase of the land has just been signed. Now, the goal is to make an investment decision in 2019, after which a three-year construction phase will begin. The biorefinery production would start by 2023. The project continues to move forward and the figures show that it will create prosperity to a wide area and in a sustainable way.

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