Production of biofuels
Biofuels made from sustainable raw materials play a key role in the climate transition. Many countries require the admixture of biofuel to vehicle and aviation fuel, and demand will exceed supply for the foreseeable future.
SCA has formed a joint venture with the Finnish energy company St1 to produce biofuel. SCA is investing SEK 600m in the company, which will own half of the biorefinery that St1 is constructing at its facility in Gothenburg. The biorefinery will produce advanced liquid biofuels, such as renewable HVO diesel and biojet fuel. SCA is making its raw material resources available in the form of tall oil. The total production capacity of the biorefinery will be 200,000 tonnes of biofuels, which is equivalent to the total fuel requirements of domestic flights in Sweden. The biorefinery will be commissioned in mid-2023. St1 will also own half of the Östrand biorefinery.
Östrand biorefinery has received environmental conditions to produce biofuels on two production lines: one using black liquor, which is a by-product from Östrand’s kraft pulp production, and one using solid biomass, such as sawdust and bark. While the biorefinery in Gothenburg is based on well-tested and commercial technology, the Östrand biorefinery will focus on technology that is still under development. It is therefore not possible to state when any investment decision may be taken.
More information about the project Östrand Biorefinery