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Fintoil takes final decision to invest Euro 100 million to build crude tall oil biorefinery in Hamina, Finland

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Fintoil takes final decision to invest Euro 100 million to build crude tall oil biorefinery in Hamina, Finland

February 09, 2021 - 03:27
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HELSINKI, Feb. 9, 2021 (Press Release) -Finnish company Fintoil today announced its final investment decision to build a 100€ million biorefinery in Hamina, Finland, which will lead to the erection of the world’s third largest crude tall oil (CTO) refinery. The plant has recently been granted environmental and construction permits, with construction work starting in February 2021.

Fintoil is due to start its commercial operations in the summer of 2022. The plant refines a kraft pulp byproduct, CTO, to produce feedstock for renewable second-generation renewable diesel, and utilizes other fractions to cater to the needs of chemicals, foodstuffs, and pharmaceuticals industries. The refinery’s capacity is 200,000 tons. Fintoil aims at a revenue of 150 million euros and will employ 35 persons directly and an estimated 100 persons indirectly.

The investment decision brings long-awaited positive news and relief to Finnish economy mauled by the COVID-19 virus. The new biorefinery also supports Finland and EU’s efforts to reach carbon neutrality in quick succession. The climate footprint of crude tall oil derivatives is up to 90% lower than of its fossil counterparts. Fintoil’s new refinery’s production will bring a 400,000-ton reduction in carbon dioxide emissions, which equals to roughly one percent of Finland’s total emissions. The emissions reductions come especially from the transport sector: over 50% of the facility’s total production is directed towards crude fatty acid (CFA), or so-called Fintoil Pine Diesel, which is a critical component of renewable HVO-diesel. CFA allows for the yearly production of 100 million liters of pure, renewable biodiesel, which equates to the yearly fuel consumption of about 110,000 cars.

Fintoil’s offering comes at an opportune time as the challenges of the transition towards fossil-free transportation is in dire need of solutions. Crude tall oil is classified as a sustainable feedstock for advanced biofuels in the EU’s Renewable Energy Directive.

“Feels great to get this ship sailing full speed. Despite the challenging times, our plans have advanced quickly, and we have been able to stick to our schedule. Once production starts in the summer of 2022, our products will quickly make a major impact in reducing emissions, which directly aids the Finnish government in its aspirations to reach carbon neutrality”, said Jukka Ravaska, CEO of Fintoil.

Fintoil’s refinery is a textbook example of how a modern company should operate resource-efficiently in the circular economy. In addition to crude fatty acid, the distillation process separates rosin, sterol pitch, and turpentine, which are sold for further refinement to clients in the chemicals, foodstuffs, and pharmaceuticals industries. All products are sustainable and replace petrochemical products on the market reducing the carbon footprint.

Major leaps in energy efficiency will also be taken in production. Fintoil’s refinery utilizes Neste Engineering Solutions’s patented NEXPINUS technology, which translates to over 40% less energy consumption in comparison to a traditional tall oil refinery.

Information about Fintoil

Fintoil is a company founded in 2017. Fintoil will refine crude tall oil for the production of advanced biofuels. Other derivatives will be sold for further refinement to clients in the chemicals, foodstuffs, and pharmaceuticals industries. The company’s refinery will start its operations during summer 2022. Fintoil’s key personnel and founders have decades of experience in the tall oil business and related investment projects. Taaleri Group is a major investor in Fintoil. Fintoil’s parent company is owned by its key persons, Taaleri Sijoitus Oy, and a number of Finnish private investors. Fintoil’s biorefinery is a significant investment in the Finnish industry and know-how for Taaleri, and supports Taaleri’s growth in impact investments and as a financier of renewable energy.