Tall oil from SCA's kraft pulp mills will serve as biofuel feedstock for the new facility.
Swedish forest products company SCA and the Finnish energy group St1 have joined forces to build a 100,000 tpy biofuel plant at St1's existing refinery site in Gothenburg, Sweden. The investment cost amounts to SEK500m and biofuel production is planned to start in 2021. The realisation of the lignocellulosic biorefinery project was conditional upon receiving necessary permissions and final approval from the two companies, SCA and St1 explained in a joint press release.
The new biofuel production plan will process tall oil and rely on feedstock supplied by SCA's kraft pulp mills in Östrand, Obbola and Munksund. Capacity expansion at SCA's pulp mill in Östrand will reportedly double tall oil production at the site.
"Partnership with SCA is a key element in implementation of our renewable fuels investment programme and it secures supply of raw materials to meet the ambitious Nordic climate targets for 2030," said Mika Antonen, Chairman of the Board of St1.