SCA and St1 have entered a joint venture to produce and sell liquid biofuels.
SCA will supply tall oil to the joint venture and will invest approximately SEK 0.6 billion (€590 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, in Sweden, which is now making an investment in a biorefinery with total capacity of 200,000 tonnes of liquid biofuels.
The new biorefinery will be operational in the second quarter of 2023.
“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.
“In line with our communicated long term strategy, we will now with the joint venture with St1 go from being a supplier of tall oil to the chemical and fuel industries to becoming active in the further refining of our renewable raw materials,” added Ulf Larsson, president and CEO of SCA.
“We will continue to develop the business potential of the renewable by-products we have from our forests and industries in order to further develop our value chain and to contribute to the EU’s ambitious climate strategy.”
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.
It is designed to optimise production of renewable HVO diesel and biojet fuel and to use tall oil-based feedstock.
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.
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