Press releases

Vapo Oy press release                                                                          28 May 2009

Metsäliitto and Vapo join forces in biodiesel collaboration

Metsäliitto and Vapo have agreed on a collaborative project in preparation of setting up a biofuel plant in the Baltic Sea area. The location alternatives are Kemi, Äänekoski, Jönköping in southern Sweden, and Kunda in Estonia. The assessment of environmental impacts will be begun at these sites. Evaluation of other potential sites will also continue.
 
On the basis of the results obtained, the parties will prepare an investment decision, the resources for which will be available during 2010 at the earliest. The plant would use as raw materials various types of forest energy waste, peat from forest-drained boglands, and reed canary grass. The end products would be synthetic biofuels and biogases, produced using sub-processes based on e.g. gasification and Fischer Tropsch technologies.
 
The project concentrates on establishing the viability of the operation as a business. If the decision to invest is made, the parties will set up a company under equal ownership to continue the preparation.
 
Metsäliitto and Vapo have significant timber and peat raw material reserves, and both parties are keen to jointly increase their use in a cost-effective and sustainable way. Finland is excellently placed to become a forerunner in biofuel business based on domestic raw materials outside the food supply chain.
 
"Synthetic fuels are a new opportunity to use peat, providing a means of increasing our energy self-sufficiency in accordance with the principles of sustainable development", says the Managing Director of Vapo Oy, Matti Hilli.

Metsäliitto Group Press release                                                              28 May 2009

Metsäliitto and Vapo are exploring the possibilities for bio-fuel production

Metsäliitto Group and Vapo have initiated a joint project to explore the possibilities for establishing a wood-based bio-fuels factory in the Baltic Sea region.

In addition to the economic feasibility of production, the project is also assessing different alternative locations around the Baltic rim. Kemi and Äänekoski in Finland, Jönköping in Sweden and Kunda in Estonia are being investigated as potential locations. An environmental impacts assessment process will also be initiated in these locations. The work for finding other potential locations also continues.

"Liquid bio-fuels are one possible line of development for new wood-based products, and we want to take a closer look at it," says Kari Jordan, President and CEO of the Metsäliitto Group.

Metsäliitto and Vapo are well placed to develop a bio-fuel business based on wood and peat. The factory now being investigated would use as its raw materials different forest-based energy, peat from drained swamps and reed canary grass, but the utilisation of, for example, wood-based building waste would also be possible.

The end products would be synthetic liquid and gaseous bio-fuels.

The investigation is expected to take approximately one year. If the decision is taken after the investigation to implement the factory investment, a separate joint venture company will be established, owned fifty-fifty between the Metsäliitto Group and Vapo.