Will produce 200,000 t/y second generation biofuel
CHINESE bioenergy company Sunshine Kaidi New Energy Group has announced plans to build a €1bn (US$1.1bn) wood-based biorefinery in Kemi, Finland.
The biorefinery will produce 200,000 t/y of second-generation biofuels, 75% of which will be biodiesel and the remainder biogasoline. The biorefinery will be the largest single investment ever made by a Chinese company in Finland, and Kaidi has established a Finnish subsidiary to oversee the project.
The biorefinery will be the first of its kind in the world, while the design will be based on Kaidi’s pilot plant in Wuhan, China. The feedstock for the plant will be sustainably-sourced wood, forestry industry waste and bark. Kaidi says it will need around 2m m3/y of wood, which will be sourced from within a 200 km radius of Kemi. The refinery will use plasma gasification to convert the organic matter into syngas, followed by a cleanup step to remove impurities. The refined syngas will then be subject to the Fischer-Tropsch process to make liquid hydrocarbons. The final products will be suitable for use as drop-in fuels or for blending with petrochemical fuels.
Construction on the site is expected to begin in 2017, with the plant beginning operations in 2019. The plant will employ around 150 permanent staff, with several hundred extra jobs created in wood harvesting, transportation and machinery manufacture. Finland’s forestry industry has suffered in recent years due to the downturn in paper demand, so this is likely to be a welcome boost.
Kaidi chairman and CEO Cheng Yilong said that Finland’s experience in the forestry industry and “positive political climate” had been big incentives to invest in the country.
“Finland is the most interesting investment target in terms of biofuels in the Northern Hemisphere. Finland’s bioeconomy policies are particularly advanced and ambitious, it has large biomass resources and many interesting co-operation partners,” said Cheng.