Stora Enso and Neste Oil have inaugurated a demonstration plant at Varkaus for converting forestry residues into biofuels.

The 50/50 joint venture has set up a demo facility at Stora Enso’s mill to include a 12MW gasifier. Technologies and engineering solutions for a commercial-scale plant are being developed at the facility.

The aim is to produce renewable diesel to power vehicles.

“Biomass-based renewable fuels represent a significant future business opportunity,” said Jouko Karvinen, Stora Enso CEO. “This will require further development work and competitive forest and industry mills to host the future commercial units.”