NordFuel’s advanced bioproduct factory relies on Chempolis’ cutting edge technology – funding round launched

NordFuel announces a selection of a technology provider for its next generation bioproduct factory in Haapavesi, Finland. This decision accelerates the project towards the planned 2028 production start. Concurrently, NordFuel has initiated a financing round to ensure the completion of this state-of-the-art facility.

The collaboration with technology provider Chempolis Ltd positions NordFuel’s facility to revolutionize the conversion of forest industry’s sidestreams into sustainable biofuels and bioproducts such as bioethanol, biogas, and lignin. Chempolis is a renowned provider of groundbreaking biorefining technologies for energy, biofuel, oil, paper and chemical industries.

“We warmly thank NordFuel, that, based on thorough investigations, has chosen Finnish Chempolis as the technology supplier. In our flexible process, raw materials are efficiently refined into high-value products for rapidly growing markets. We look forward to continuing the excellent cooperation with the NordFuel team. Together we have started a journey where we act as pioneers in the transition from a fossil-based linear economy towards a bio- and circular economy,” says CEO of Chempolis Heli Antila.

The products play a pivotal role in significantly lowering transportation emissions and replacing fossil-based materials, aligning perfectly with the European Union’s Renewable Energy Directive II (RED II) and contributing to the achievement of increasingly stringent climate targets in the markets they serve. The majority of the factory’s output is intended to cater the European demand for sustainable solutions.

Setting new industry standards with advanced technology

With innovation and sustainability at the forefront, NordFuel is poised to make a significant impact on the global bioeconomy landscape. NordFuel’s commitment in Haapavesi marks a substantial bioeconomy investment, employing advanced technology for the efficient transformation of forest industry’s side streams into valuable biofuels and bioproducts.

Leveraging meticulously selected technology, the Haapavesi facility sets a new standard for operational reliability in the biofuel industry. It exemplifies a groundbreaking approach in mitigating the inherent risks associated with advanced biofuel technology, ensuring a steadfast production process.

“Chempolis’ license covers the bioethanol production technology, which is based on the so-called organosolv -process. In addition to bioethanol, the process produces high-quality, pure lignin, biogas and biochemicals”, states Matti Asikainen, the CEO of NordFuel.

Meeting the surging market demand for sustainable materials

The demand for biofuels and bioproducts is surging globally, fueled by strict environmental and climate directives that will further tighten in 2030. The market for bioethanol, European biogas, lignin, and other biomaterials is experiencing robust growth, with forecasts indicating continued expansion. NordFuel’s production capabilities will support the replacement of fossil-based substances across industries and aid in the reduction of greenhouse gas emissions from road transport. The production process also generates biogenic carbon dioxide and essential chemicals like furfural and acetic acid, further contributing to environmental sustainability.

“The establishment of our bioproduct factory significantly furthers the achievement of climate targets in our target markets. As we enhance resource efficiency, we concurrently diminish dependence on fossil fuels and cut carbon emissions. The reductions in emissions are particularly impactful within the transportation sector, yet the production of lignin and biogas also introduces significant emissions reductions across other sectors,” says Asikainen.

Strategically situated in Haapavesi, within an emerging clean energy cluster in Finland, NordFuel’s factory leverages proximity to significant wind power capacity and potential developed by Puhuri and a planned e-fuel production plant by Liquid Wind. This location, close to Finland’s principal export harbors and industrial facilities, guarantees operational efficiency and cost-effectiveness. NordFuel’s project offers compelling investment opportunities that advance climate and environmental goals, signifying a noteworthy step forward in the bioeconomy sector.

The project is introduced in greater detail on NordFuel’s webpage www.nordfuel.fi/en/front-page/

Additional information:

Matti Asikainen, CEO
+358 40 5534 926
matti.asikainen@nordfuel.fi

Juha Hartikainen, COO
+358 50 379 0164
juha.hartikainen@nordfuel.f

Materials
Anniina Kärkkäinen, Communications Manager
anniina.karkkainen@nordfuel.fi

NordFuel Ltd is preparing a modern bioproduct factory in Haapavesi, Northern Ostrobothnia, Finland. The bioproduct factory will produce bioethanol, lignin, biogas, and other products from domestic sawdust and forestry by-products, significantly reducing transportation emissions and replacing fossil-based raw materials and chemicals in industry. NordFuel Ltd is a subsidiary of Kanteleen Voima Ltd.

Chempolis Ltd’s formico® technologies enable the sustainable production of high-quality products such as bioethanol, biochemicals, and sulfur-free lignin from all lignocellulosic raw materials. The process broadly and flexibly utilizes lignocellulosic biomass with high material efficiency. Chempolis’s biorefining processes are designed to minimize environmental impacts and maximize social benefits globally. Chempolis’s services include biorefinery project development, technology licensing, product and application development, and piloting. The company is headquartered in Oulu, where it also offers biorefinery piloting services.

Juha Hartikainen Appointed as the Chief Operating Officer of NordFuel’s Biorefinery Project

Doctor of Engineering (Dr.-Ing.) Juha Hartikainen has been appointed as the chief operating officer of NordFuel Oy from November 1, 2023.

In his role, Hartikainen will oversee the daily operations of the biorefinery project, focusing on the establishment and investment phase, and the selection of technical functions, technologies, and suppliers.

Hartikainen moves to the chief operating officer’s role from Borealis Polymers Oy, a manufacturer of polyolefins and basic chemicals, where he has held various research, development, and management roles for fifteen years. In his most recent role, Hartikainen led a team of process experts in the company, supporting investment project planning and implementation globally.

“We are extremely pleased to have a person at the control of our project’s daily work, someone with extensive and diverse experience from the chemical industry and strong expertise in leading expert teams and projects – these qualities are essential in the role of a COO,” praises Matti Asikainen, CEO of NordFuel.

Hartikainen sees an important role for the Haapavesi biorefinery in transitioning to greener and more ecological energy sources and raw materials.

“I feel privileged to be part of such a regionally and nationally significant project. I’ve been impressed by the expertise and approach of the NordFuel team to the project. I eagerly anticipate innovating, building, and operating the new generation bio-product factory together,” Hartikainen states.

Currently, the biorefinery project is focusing on selecting a bioethanol technology suppliers and subcontractors. In addition, the project is exploring opportunities for further processing of lignin and related partnerships. NordFuel is also currently investigating the production of synthetic fuels in collaboration with wind power company Puhuri Oy.

Additional information:

Matti Asikainen
NordFuel Oy
CEO
+358 40 5534 926

Juha Hartikainen
NordFuel Oy
COO from November 1, 2023
+358 50 3790164

NordFuel Oy is preparing to build a modern biorefinery in Haapavesi, Northern Ostrobothnia. The biorefinery will produce bioethanol, biogas and lignin from domestic sawdust and forestry by-products which will replace imported fossil fuels.

Juha Hartikainen, COO of NordFuel Oy starting November 1, 2023.

NordFuel is seeking a partner for the commercialization of lignin

NordFuel Oy is looking for a partner for the commercial use of lignin, which is produced as a by-product of the biorefinery it is preparing. In the mapping of the partner company, NordFuel is collaborating with Brightplus Oy.

NordFuel is preparing to build a modern biorefinery in Haapavesi, Northern Finland. The biorefinery will produce bioethanol and biogas from sawdust and forest residues. The process based on enzymatic hydrolysis produces lignin as a by-product, about 230,000 tons per year.

The company is now looking for a buyer for the lignin produced in the process. In addition to the procurement contract, the partner has the opportunity to participate in lignin product development and to participate in process design insofar as it affects the properties of the lignin produced.

At the moment, process design and technology provider selection is underway in the biorefinery project. The biorefinery’s environmental permit gained legal force at the beginning of 2023, and preparatory work in the power plant area has been started by dismantling parts of the former peat power plant located in the area. The biorefinery’s production is set to start in 2026.

Please see the attached document for a more detailed proposal for cooperation.

Additional information:

Johnny Pehkonen
Business Development Director
Brightplus Oy
+358 50 597 5944

Johanna Laukkanen
Development Engineer
NordFuel Oy
+358 50 553 3760

Environmental permits for NordFuel biorefinery’s energy centre and biogas and carbon dioxide downstream processing plants are now effective

The Regional State Administrative Agency of Northern Finland has granted environmental permits to NordFuel’s biorefinery’s energy centre and the biogas and carbon dioxide processing plants. The environmental permits were not appealed.

“The energy centre, biogas, and carbon dioxide downstream processes are integral to the planned biorefinery complex. These operations will allow us to make use of all material and by-product streams efficiently,” says Maarit Rimpiläinen, QEHS Manager at NordFuel.

The environmental permit for NordFuel’s biorefinery became effective in February when the Supreme Administrative Court issued a ruling on an appeal against the permit.

Utilizing side streams

The biorefinery’s energy centre produces the steam required by the biorefinery and the heating and cooling energy for the site. Power of steam boiler will be up to 99 MW. Biorefinery by-products, like lignin, will be used as fuel.

The water treatment process of the biorefinery will produce raw biogas, which will be refined on-site into liquefied biogas suitable for vehicles.

Carbon dioxide is produced in the bioethanol production process and biogas processing.
The biogenic carbon dioxide is dried, purified, and liquefied. The end product is liquefied carbon dioxide that is suitable for example for the food industry. In the future, the recovered carbon dioxide can be used together with hydrogen to produce synthetic transport fuels.

Additional information:

Maarit Rimpiläinen
QEHS Manager, NordFuel Oy
+358 40 5814753

NordFuel Oy is a wholly owned subsidiary of Kanteleen Voima Oy, which is planning the construction of a modern biorefinery in Haapavesi, North Ostrobothnia. The biorefinery will produce bioethanol, biogas and lignin from domestic sawdust and forestry by-products which will replace imported fossil fuels.

NordFuel biorefinery’s environmental permit is legally valid

The Supreme Administrative Court issued on Monday 27th February its decision to the complaint raised against the biorefinery’s environmental permit application. The decision enables the start of operations in accordance with the environmental permit.

“We are satisfied with the decision of the Supreme Administrative Court. A legally valid environmental permit provides the conditions to continue preparing the project for the investment decision,” says Matti Asikainen, CEO of NordFuel Oy.

According to the KHO’s decision, NordFuel must submit a report on the possible harm caused by the operation to the recreational use of the water to the regional administrative agency after three years of operation of the biorefinery.

“A lot of attention has been paid to the water treatment of the biorefinery, and of course we do everything we can to ensure that the effects on the environment are as small as possible. The authority will then assess in due time whether there is a need to compensate for the harm caused to the recreational use of the waters for the property related to the complaint,” Asikainen specifies.

The biorefinery planned by NordFuel in Haapavesi will produce 65,000 tons of ethanol and 150 GWh of biogas for transport use after completion. This production amount will double bioethanol production in Finland compared to the level of 2021.

More information:
Matti Asikainen
CEO, NordFuel Oy
+358 40 553 4926

NordFuel Oy is a 100% owned subsidiary of Kanteleen Voima Oy, which is preparing the construction of a modern biorefinery in Haapavesi, North Ostrobothnia. The biorefinery produces bioethanol and biogas and lignin from domestic sawdust and forestry byproducts, which replace imported fossil fuels.

NordFuel strengthened its organization in 2022

NordFuel recruited several new experts in 2022.

Katariina Moring started as NordFuel’s controller on January 5, 2023. Moring moved to NordFuel from Fennovoima, where she worked for several years in various financial management positions. Moring has a bachelor’s degree in Business Administration.

Anniina Kärkkäinen-Oinas, who started as NordFuel’s communication manager in August, also moved to NordFuel from Fennovoima as a communication specialist. Kärkkäinen-Oinas has a master’s degree in Social Sciences. Kärkkäinen-Oinas also works as Puhuri Oy’s communications manager.

Maarit Rimpiläinen started as NordFuel’s QEHS manager in March 2022. Rimpiläinen has a master’s degree in Process Engineering and she has previously worked with environmental and quality issues at Loiste Energia and Kainuun Voima, among others.

“We have a great group of experts from different fields. By developing the organization, we are preparing for the investment phase of the biorefinery,” says NordFuel CEO Matti Asikainen.

NordFuel is preparing to build a modern biorefinery in Haapavesi, North Ostrobothnia. The biorefinery produces bioethanol, biogas, and lignin from domestic sawdust and forestry byproducts, which will replace imported fossil fuels.

NordFuel Oy’s energy will be produced by wood

NordFuel Oy is planning to build a biorefinery that would produce fuel ethanol from wood. NordFuel will also replace the Kanteleen Voima’s existing thermal power plant in Haapavesi with a new wood fuel fired industrial boiler.

The engineering of the bioethanol plant will continue based on a new wood-fired boiler

Kanteleen Voima’s board made a decision 26th of March 2021 to produce process steam used by the NordFuel biorefinery with a new steam boiler. The main fuel for the boiler will be biorefinery’s by-product lignin. In addition, the boiler uses bark, raw turpentine and sludges as fuel.

The decision to replace the old peat-fired boiler with a smaller steam boiler became topical when the 24.5 M€ subsidy granted by the Ministry of Employment and the Economy in June 2020 precondition is the use of 100 % renewable fuels. All fossil fuels, including peat, are excluded.

”The decision on the choice of energy production method is a significant step for our biorefinery project. Fuel to be used is important starting point in designing the biorefinery, because we aim to utilize all raw material as efficiently as possible. Unfortunately, the targets set for reducing peat use as well as foreseen political and economical instruments mean that we cannot utilize peat in our process. In short, in the future we cannot use peat anymore, and the fuel for the biorefinery will be different wood fractions and by-products of the biorefinery. Despite this NordFuel project is progressing as planned and next we can make a decision of the bioethanol technology provider”, says the CEO Matti Asikainen.

Additional information:

  • Petri Vesanto, Project Director, +358 50 517 62 68
  • Matti Asikainen, CEO as of April 1st, +358 40 553 49 26

NordFuel Oy’s biorefinery will produce 65,000 tons of 2G bioethanol annually. In addition, biorefinery will produce lignin pellet and biogas. NordFuel Oy will be locally a significant employer.

The organization of Kanteleen Voima and NordFuel is strengthened. New CEO Matti Asikainen will start on April 1, 2021

Matti Asikainen has been appointed the new CEO of Kanteleen Voima and NordFuel as of April 1, 2021. Asikainen will transfer to Kanteleen Voima from David Brown Santasalo Finland Oy. Asikainen has had a long career at David Brown Santasalo, e.g., country manager and aftermarket manager for the European division. He has previously worked e.g., in various management positions at Winwind Oy.

The planning work for the NordFuel project is progressing according to plan. The project reached two significant milestones last year. The Ministry of Employment and the Economy granted an investment subsidy of € 24.5 million for NordFuel´s Haapavesi biorefinery and in July the Regional State Administrative Agency granted an environmental permit. The technology supplier selection process is in its final stage, and the final selection will be made in March. After this, NordFuel will be able to start the engineering phase of the project together with the selected technology supplier and the main engineering contractor of the biorefinery.

Andreas Rasmus, the current CEO of the companies, will focus on his main job as Production Director of Katternö Group. He will also continue as a board member of NordFuel.

“We thank Andreas for his good work as CEO. During his time as CEO, the project has been systematically going forward. The intensity of the project is increasing, and now is the right time to strengthen the organization with a full-time CEO. We welcome Matti to our team!” Says Roger Holm, Chairman of the Board.

“It has been a pleasure and very interesting to be involved in developing the NordFuel project and leading Kanteleen Voima, but the next stages of the project need a full-time CEO and unfortunately my own time is no longer enough,” says Andreas Rasmus, the resigning CEO.

Kanteleen Voima and NordFuel offers an excellent vantage point for second-generation transport biofuels as well as for the energy industry in transition. I look forward to meeting our professional staff and partners and taking the NordFuel project forward with them” commented the future CEO Matti Asikainen.

Additional information:

  • Roger Holm, Chairman of the Board, +358 40 585 2495
  • Andreas Rasmus, CEO until 31 March, +358 44 781 5396
  • Matti Asikainen, CEO as of April 1, +358 40 553 4926

Kanteleen Voima Oy Is a Finnish electricity producer established in 2006. It is owned by 24 private and municipal small and medium size energy companies.

NordFuel Oy is Kanteleen Voima Oy’s 100 % owned subsidiary, which is preparing the construction of a biorefinery producing second-generation (so-called 2G) biofuels for transport in Haapavesi. The biorefinery will produce 65,000 tons of 2G bioethanol and 200 GWh 2G biogas annually. The biorefinery will be locally a significant employer.

Minister of Economic Affairs: Biogas to be included in distribution obligation

Minister of Economic Affairs Mika Lintilä visited together with Member of Parliament Juha Pylväs in Haapavesi power plant on Monday morning to get acquainted with the NordFuel biorefinery project. During the visit the updated status of the project and current topics were discussed.

Minister Lintilä’s view on including transport biogas in the distribution obligation would be a significant improvement on the current situation, as it would create a wider market for biogas. It would be profitable for distribution companies to expand their gas distribution network, as with biogas they could also fulfill their obligation to mix biofuels in fuels sold in Finland. Currently, the distribution obligation is 20 per cent, which means that one fifth of the share of transport fuels must be bio-based: bioethanol or biodiesel made from renewable resources.

In the beginning of summer NordFuel biorefinery got a positive investment subsidy decision from the Ministry of Employment and the Economy. Investment support is intended for large renewable energy technology demonstration projects. If realized, NordFuel will be a major producer of wood-based bioethanol and biogas, which contributes to the national target of increasing the share of transport biofuels.

More about this topic in Haapavesi newspaper (in Finnish).

Petri Vesanto has been appointed Project Director as of November 1st 2020

Petri Vesanto, M.Sc. in Chemical Engineering, has been appointed Project Director for the design phase of NordFuel’s biorefinery investment. Petri has worked over 35 years in management positions in investment, design and development projects in the energy and chemical industries e.g. in Kemira and Ekono-Pöyry companies. Since 2002 Petri has managed the engineering office he founded, Novox Oy.

Tendering and selection process of biorefinery’s technology supplier is currently ongoing. After this, NordFuel will be able to start the engineering phase of the project together with the selected technology supplier and the main engineering contractor of the biorefinery.

”Petri has very diverse experience in management positions in the planning of large investment projects. This experience perfectly meets the needs of the next phase of the NordFuel project. It is also valuable that Petri has a thorough knowledge of the project and the project organization.” says Andreas Rasmus, CEO.

Additional information:

  • Andreas Rasmus, CEO, NordFuel Oy, +358 44 781 5396
  • Petri Vesanto, Project Director, NordFuel Oy, +358 50 517 6268

NordFuel Oy is s Kanteleen Voima Oy’s 100 % owned subsidiary, which is preparing the construction of a biorefinery producing second-generation (so-called 2G) biofuels for transport in Haapavesi. The biorefinery will produce 65,000 tons of 2G bioethanol and 200 GWh 2G biogas annually. The biorefinery will be locally a significant employer.

Novox Oy operates in NordFuel Oy’s biorefinery project as owner’s engineer. Novox is an engineering consulting company specialized in new and renewable energy and in energy economics, whose areas of expertise also include projects related to the management and development of environmental issues in industrial and production facilities.