Oleochem Analytics — St1 and SCA plan to enter into a 50/50 Joint Venture (JV) to produce and sell liquid biofuels, said Helsinki headquartered St1.
The JV will have a 50% share in the St1 Gothenburg biorefinery, currently under construction, and will have a total capacity of 200,000 t/yr of liquid biofuels.
The new biorefinery is designed to optimize production of renewable diesel (HVO) and biojet and will use SCA’s tall oil as a feedstock. Tall oil is a by-product from the kraft pulp production at SCA’s mills in Östrand, Obbola and Munksund, the company said. The biorefinery will also be capable of using a wide range of other feedstocks.
“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 new biorefinery is expected to be operational in Q2 2023.
The companies also announced that, as part of the agreement, St1 also becomes a 50% owner of SCA Östrand Biorefinery. The Östrand biorefinery project has recently received environmental permits for the production of 300,000 tons of liquid biofuels based on black liquor (a by-product from Kraft pulp production) and solid biomass (such as sawdust or bark).
The biorefinery in Östrand is a development project where a number of technological challenges remain unsolved before a project design can be finalized, the companies said.