Veolia launches Finland plant to produce carbon neutral biofuel from paper pulp

Integrated environment service operator Veolia has launched the world’s largest biorefinery project producing carbon neutral bio-methanol from a pulp production plant in Finland, unlocking a rarely explored potential of the alternative source of feedstock for biofuel, the company said on Wednesday.

Developed in close collaboration with Metsä Fibre, the world's largest producer of market pulp and global manufacturer of sawn wood, the US $54.6-million refinery will produce commercial bio-methanol from bioproducts by safely integrating a process for refining sulphated crude methanol into pulp production, Veolia said in a statement.

The refinery, owned and operated by Veolia, will be located next to Metsä Fibre’s Äänekoski plant in Finland – which is due to come on stream by 2024, the company said. With an annual production capacity of 12,000 tons, the plant will be able to avoid up to 30,000 tons of CO2 emissions per year.

“Our biorefinery project with Metsä Fibre is in line with Veolia’s strategy to develop local energy loops allowing decarbonisation and energy sufficiency,” Estelle Brachlianoff, COO of Veolia, said in a statement.

“The advantage of our industrial concept is that it is replicable at around 80% of the pulp mills worldwide. It has a potential to unlock an additional, locally generated feedstock of CO2-neutral biomethanol for biofuel that could be estimated at 2 million tons,” she added.

The project is expected to contribute strongly to Europe’s energy security while supporting the European Green Deal decarbonisation ambitions for transportation, as the industrial grade quality CO2-neutral biomethanol represents a new source of sustainable low carbon fuel replacing fossil-based fuels.