China’s Kaidi plans €1bn biofuel plant in Finland

Sunshine Kaidi New Energy Group, a Chinese renewable energy giant, is planning to invest €1 billion in a new wood-based biodiesel plant in Finland, as the country looks to replace fossil fuels with biofuels.

Kaidi said the plant would use wood-based biomass as its main raw material and it is scheduled to start operations in the northern city of Kemi by the end of 2019.

The plant is due to employ around 4,000 people during its construction.
This will offer a boost for an economy that has lost thousands of jobs in the past decade due to paper mills closing down as a result in the increase of digital devices.

Kaidi said it was attracted by Finland's vast forests and government subsidies.

"Finland is the most interesting investment target in the northern hemisphere, when it comes to biofuels," Kaidi Chairman Chen Yilong said in a statement.

Kaidi operates about 30 biomass plants in China and Vietnam, and the Kemi plant would be its first in Europe.

"This is very positive news for Lapland and for Finland. Wood processing and new wood-based products are a major thing for Finland," Employment Minister Jari Lindstrom said.