Stora Enso to develop biofuel

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16 March 2007 — Helsinki (FIN): Stora Enso has signed an agreement with Neste Oil to work together in developing technology for producing new biofuels.

The greener fuels will be made from wood residues and are intended to be a replacement for fossil fuels in transportation, helping to reduce greenhouse gases.

 

The first step is the development process will be to design and build a €14 million ($18.6 million) demonstration plant at Stora Enso’s Varkaus Mill in Finland.

 

The plant, will be integrated into the energy infrastructure of the Varkaus Mill, where the gas produced will equal the energy needed to heat 4,300 homes and cut carbon dioxide emissions significantly.

 

It will be owned on a 50/50 basis by the two companies and is expected to be operational in 2008.

 

Following the development phase, the joint venture will then build a full-scale commercial production plant at one of Stora Enso’s mills, once the technical solutions are ready and the JV partners have gained enough experience from the demonstration plant.

 

Stora Enso will be responsible for supplying wood biomass to the production plant and utilising the heat generated at its pulp and paper mill. Neste Oil will be responsible for final refining and marketing of the biofuels produced.