Forest products company SCA and St1 have entered a joint venture in Sweden to produce and sell renewable HVO diesel and biojet fuel. SCA will supply tall oil to the joint venture for feedstock and will invest approximately SEK 0.6 billion (US$71.7 million) in the company. SCA and St1 will be equal shareholders of the joint venture, which will itself have a 50% share in the St1 Gothenburg Biorefinery.
The new biorefinery is under construction on the St1 refinery site in Gothenburg and will have a total capacity of 200,000 tonnes of liquid biofuels, with a total investment cost of SEK 2.5 billion (US$299 million). The new biorefinery will be operational in Q2 2023.
The joint venture will have access to SCA’s tall oil, a by-product from the kraft pulp production at SCA’s mills in Östrand, Obbola and Munksund. The biorefinery will also be capable of using a wide range of other feedstocks and is expected to be operational in Q2 2023.
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 tonnes 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 to be solved before a project design can be finalized.
St1 Nordic Oy is a Nordic energy group whose vision is to be the leading producer and seller of CO2-aware energy.