NordFuel Oy

NordFuel is a subsidiary of Kanteleen Voima Oy, which is preparing to construct a bioproduct factory in Haapavesi, Northern Ostrobothnia. The bioproduct factory will be built on the site of Kanteleen Voima’s former peat power plant, utilizing the power plant’s existing infrastructure.

The construction of the bioproduct factory represents an investment of approximately 400-500 million euros, expected to create around 250 new jobs in the region.

From a Source of Emissions to a Utilizer of CO2

The preparation for the bioproduct factory project began in 2016 when the owners started looking for a new use for the decommissioned peat power plant in biofuel production. The project was incorporated in 2020.

Biofuel production was deemed an economically viable solution as the power plant is in a forest-rich area, at the heart of biomass production areas. The project reached its current form following an environmental impact assessment.

Haapavesi as an Excellent Location

Haapavesi offers an excellent location for the bioproduct factory, both in terms of raw material availability and good logistical connections. Haapavesi is situated within a 100–150 kilometer radius of significant forested areas and a considerable amount of sawmill industry, whose by-products will be used as raw material in NordFuel’s bioproduct factory.

The location is also favorable for access to several ports (Kalajoki, Kokkola, Pietarsaari, Raahe, and Oulu), through which finished products can be delivered to markets if necessary.

The existing industrial infrastructure in the area, such as buildings, storage areas, electricity, and water connections, represents a significant cost benefit for the project.




Preliminary study and technology mapping

During the years 2016-2018, an environmental impact assessment for the biorefinery was carried out, and a preliminary concept plan was formed for the bioethanol production process and for a process water treatment used in the biogas production.

In June 2020, the Ministry of Economic Affairs and Employment granted the biorefinery project 24.5 million euros of investment support intended for major demonstration projects.


Technology selection, preparatory works for plant location, environmental permits

Ethanol production trial runs have been conducted since 2020, in addition to comparing process technologies and suppliers for main equipment. Partners have been mapped for commercializing lignin and for seeking added value for side streams of bioethanol production.

In the spring of 2022, preparations for constructing the biorefinery began on the Haapavesi plant area, with the dismantling of unnecessary parts of the former peat power plant. The existing infrastructure of the area can be utilized, including the fuel terminal, cooling water network of the plant area, maintenance, office and control room facilities, and electrical grid connections.

In the spring of 2023, the biorefinery, as well as the energy center and carbon dioxide refinement plants for the biorefinery, received legally binding environmental permits.


Basic design and investment decision

The selection of the technology supplier initiates the basic design phase (PDP), which progresses to detailed design (FEED).

During the basic design phase, reliable design documentation is created for the project, and during the detailed design phase, the final cost estimate is prepared.

The final investment decision can be made after the completion of the detailed design.


Construction and commissioning

After the investment decision and before construction begins, a building permit is required for the plant.

The implementation phase starts with the investment decision and continues until the plant reaches mechanical completion. After this, the commissioning phase begins, continuing until the start of commercial operations of the biorefinery.



The bioproduct factory will produce bioethanol, biogas and lignin from sustainable raw materials.