Sweden – SCA and St1 have formed a partnership to develop and market liquid biofuels. SCA will provide the joint venture with tall oil and will invest around SEK 0.6 billion in the enterprise.
SCA and St1 will be equal partners in the joint venture, which will own 50% of the St1 Gothenburg Biorefinery, which is currently investing in a biorefinery with a total capacity of 200,000 tonnes of liquid biofuels for a total investment cost of SEK 2.5 billion. The new biorefinery will be operational in the second quarter of 2023.
The new biorefinery, which is being built on the St1 refinery site in Gothenburg, will have a total capacity of 200,000 tonnes of liquid biofuels. It is intended to maximize the generation of sustainable HVO diesel and biojet fuel while utilizing tall oil-based feedstock. SCA’s tall oil, a byproduct of kraft pulp production at SCA’s mills in Strand, Obbola, and Munksund, will be available to the joint venture. The biorefinery, which is slated to be operational in Q2 2023, will also be able to use a variety of other feedstocks.
As part of the arrangement, St1 acquires a 50% stake in SCA strand Biorefinery. The strand biorefinery project just secured environmental licenses to produce 300,000 tonnes of liquid biofuels from black liquor (a byproduct of kraft pulp production) and solid biomass (such as sawdust or bark). The strand biorefinery is a development project in which a number of technological hurdles must be overcome before a project design can be realized.