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SCA and St1 establish joint venture for liquid biofuels

20 Sep 2021 − 

New 200,000 tpy biorefinery is being build in Gothenburg.

SCA is to further expand the value chain of its renewable by-products and plans to take the next step from being a supplier of tall oil to the chemical and fuel industries to a processor of its renewable raw materials. The company has formed a joint venture with renewable energy developer and supplier St1 Nordic Oy to produce and sell liquid biofuels. SCA will supply tall oil to the joint venture and invest approximately SEK0.6 billion in the company. SCA and St1 will be equal shareholders in the joint venture, which will in turn have a 50% stake in St1 Gothenburg Biorefinery, which is currently building up a biorefinery with a total capacity of 200,000 tonnes per year of liquid biofuels. The total investment cost is estimated at Skr 2.5 billion. The new biorefinery is expected to be operational in the second quarter of 2023.

The new biorefinery is currently being built on the site of the St1 refinery in Gothenburg. It is designed to optimise the production of renewable HVO diesel and Biojet fuel, using tall oil as feedstock. The joint venture will have access to SCA's tall oil, a by-product of the production of kraft pulp at SCA's plants in Östrand, Obbola and Munksund. The biorefinery will also be able to use a wide range of other raw materials and is expected to be operational in the second quarter of 2023.

Under the agreement, St1 will also become a 50% owner of the SCA Östrand biorefinery. The Östrand biorefinery has recently received environmental approval for the production of 300,000 tpf of liquid biofuels based on black liquor and solid biomass such as sawdust or bark. SCA and St1 explain that the Östrand biorefinery is a development project with a number of technological challenges to be solved before the project design can be finalised.         

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