Published on August 7th, 2013 | by Anneli Hidalgo0
European investment for biobased products
Around fifty companies team up with the European Commission to set up a public-private partnership and accelerate the deployment of biobased products in Europe.
The European Commission has proposed a €3.8 billion Public Private Partnership (PPP) on Biobased Industries. From 2014 to 2020, the European Commission will invest €1 billion and industry €2.8 billion to boost market uptake of new biobased products that are “made in Europe”.
48 European companies in the biotech, chemical, energy, agro-food and pulp and paper sectors take part of this project. The partnership will promote the use of various sources of sustainable biomass and waste to produce everyday products such as food, feed, chemicals and fuels. Accordingly, the use of local biomass and waste will generate growth and jobs in rural areas across European regions, while reducing the EU’s reliance on fossil fuels, thereby offering sustainable alternatives to oil-based products and enhancing energy and food security.
Stora Enso builds biorefinery
As a part of the partnership, Stora Enso has decided to invest EUR 32 million in building a world-class biorefinery at Sunila Mill in Finland, which will reduce the CO2 emissions of the mill by replacing up to 90% of natural gas by lignin extracted from the black liquor. The investment includes a lignin extraction plant and dryer, lignin dust burners in the lime kilns, and a packing line. Production is scheduled to start up during the first quarter of 2015. The investment is expected to generate annual sales of EUR 80 million in 2017 and over time clearly exceed Stora Enso’s ROCE target of 13%. The technology also has the potential for future scalability at other Group pulp mills. Sunila Mill has an annual capacity of 370 000 tonnes of softwood pulp. The mill employs approximately 230 people.