Neste Oil, which refines about 250,000 barrels of oil a day, and Stora Enso are to build and run a pilot biomass plant at the forestry company’s Varkaus mill in Finland.
It will cost €14m and be jointly owned by Stora Enso, which will provide the biomass, and Neste, which will be responsible for the final refining and marketing of the biofuels.
The plant will also be integrated into the energy system of the Varkaus mill, where the gas produced will equal the energy to heat 4,300 homes.
A Stora Enso spokesperson said: “The growing biofuel market in Europe is a promising and sustainable business opportunity meeting the increasing demand for premium-quality products made from a variety of feedstocks.”
The plant is due to open next year.
