Metsäliitto and Vapo are continuing with a feasibility study to set up a biodiesel plant.
Four possible locations were looked at initially, with Ajos in Kemi, Finland specified as a potential location.
An environmental impact assessment will be now be initiated.
Metsäliitto said the advantages of the plant concept under review were that it could be duplicated and was independent of the regional industrial production. Ajos has been deemed suitable based on its logistical advantages and from the perspective of raw material and end products.
The project is one of three submitted by the Finnish Ministry of Employment and the Economy to the European Commission for EU funding.
