The Koehler group is investing in the European Circular Bioeconomy Fund (ECBF) with the aim of actively fostering the development of sustainable innovations and technologies. The ECBF is the first growth investment fund to be dedicated exclusively to projects in the field of the bioeconomy in Europe, including the accompanying circular economy. With a targeted fund size of EUR 250 million, the ECBF is set to become an important international financial instrument and to contribute to making Europe climate-neutral by 2050. The circular economy conserves natural resources, and is one of the prerequisites for reaching the EU’s climate objectives in order to become climate-neutral by 2050. The Koehler Group is currently working on a range of innovations with a focus on circular economy concepts. “When developing innovations, we not only make use of internal expertise, but also rely on collaborations and start-ups. Our involvement in the ECBF will hopefully help to ensure that targeted funding is provided for promising technological developments,” Dr. Karrer continues. This not only pertains to technologies for Koehler Paper, but also to a range of other activities and business models within the Koehler Group.
The aim of the partnership is to construct a new facility to produce advanced renewable fuels from tall oil with a capacity of 100 000 tonnes per annum. Construction of the new facility, subject to permission process and final approval from both companies, is expected to cost around 500 MSEK to build and is planned to be operational in 2021. Tall oil is a residual product from the production of kraft pulp in SCA’s mills Östrand, Obbola and Munksund. SCA is presently expanding its kraft pulp mill Östrand and as a result the production of tall oil from the mill will increase by more than 100 per cent.
Between the two partners, the parties constitute the full value-chain from the raw material to the refining process, distribution and sale of the renewable fuel to the customers.
“Partnership with SCA is a key element in implementation of our renewable fuels investment program and it secures supply of raw materials to meet the ambitious Nordic climate targets for 2030,” says Mika Anttonen, Chairman of the Board of St1. “SCA works with a number of interesting development projects in renewable energy, and we see interesting opportunities to further develop the cooperation.”
“When we start working on more refined energy products, partnership with a company that knows the processes and the market, is very valuable,” says Ulf Larsson, President and CEO of SCA. “St1 is a company with the ambition to work with us in the change towards renewable fuels.”