Sweden: SCA and St1 ally to produce and develop liquid biofuels
Both companies will be equal shareholders of the joint venture in order to inaugurate the new St1 Gothenburg Biorefinery by 2023.
SCA, Europe’s largest private forest holding, and St1, the Nordic energy group, have announced a joint venture to produce and sell liquid biofuels. Both companies will join forces in order to launch a new biorefinery with a total capacity of 200,000 tonnes of liquid biofuels by 2023. With a total investment cost of SEK 2.5 billion (roughly 293 million USD), the two firms will be equal shareholders of the project.
“Partnership with SCA is a key element in the implementation of our renewable fuels investment program and it secures the supply of renewable feedstock materials to meet the ambitious Nordic climate targets for 2030,” said Henrikki Talvitie, CEO of St1 Nordic Oy.
The joint venture of the firms will have a 50% share in the St1 Gothenburg Biorefinery, an installation where the new site is under construction. Its design will not only optimize the production of renewable HVO diesel and biojet fuel but also let it use tall oil-based feedstock. It will also have access to SCA’s tall oil, a by-product from the kraft pulp production from the corporation’s mills located at Östrand, Obbola and Munksund, and it is expected to be fully operational by the second quarter of 2023.
“In line with our communicated long term strategy, we will now with the joint venture with St1 go from being a supplier of tall oil to the chemical and fuel industries to becoming active in the further refining of our renewable raw materials,” commented Ulf Larsson, President and CEO of SCA.
St1 will also become a 50% owner of SCA Östrand Biorefinery, as part of the negotiation. The site has recently received environmental permits to produce 300,000 tonnes of liquid biofuels based on black liquor and solid biomass. The project still has a long way to go but with the recent association it will undoubtedly start solving its technological challenges in order to be finalized.
