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Energy and Climate Strategy update is being finalized


Finland’s national Energy and Climate Strategy is currently being updated. The objective of the update is to ensure that Finland achieves the energy and climate policy targets set for it for 2020.

Timo Saarelainen, CEO, Green Fuel Nordic Oy, is especially satisfied with the fact that the new strategy includes a program to reduce oil dependence.

The preparatory work for the update is headed by the Government’s ministerial working group on energy and climate policy. Different ministries have worked together to compile a background report in support of the strategy; the report is now being finalized.

Saarelainen is pleased that Green Fuel Nordic Oy and its biorefinery project are mentioned in the report draft as one of the future utilizers of forest residues, and that promoting the use of pyrolysis oil is also incorporated in the report.

These mentions can be found in the following sections of the report:

Section 12.3 Renewable energy and peat, item Forest-based biomass

Increasing the use of forest residues in the production of biofuels and other bioliquids
Several big biorefineries that would use forest residues for raw material are planned in Finland: among them, a biodiesel plant planned by Vapo Oy, as well as a bio-SNG plant planned by Gasum Oy, Helsingin Energia and Metsä Fibre Oy. The amount of forest residues used by a single plant is estimated to be 1.3 - 1.5 million m3.

Additionally, Fortum has announced that it will build one pyrolysis-based biorefinery, and Green Fuel Nordic Oy is planning to build three pyrolysis-based biorefineries. It is estimated that these plants will use 0.2 - 0.35 million m3 of forest residues. According to the plans, the plants will be completed by 2018 and will use a total of about 5.5 million m3 of forest residues. This would increase the planned use of forest residues in 2020 to 17 million m3, making the sourcing of forest residues tight.

Section 16 Program to reduce the use of mineral oil, item Promoting the use of pyrolysis oil

Pyrolysis oil is produced mainly from forest residues. Today, pyrolysis oil can replace heavy fuel oil in heating boilers and coal in coal-fired boilers. Active research efforts are under way to develop pyrolysis oil technology and to produce bio-oils and fuels that have higher refining value. The investment decision to build the first pyrolysis oil production plant has been made and a few other projects are in the works.

According to VTT Technical Research Centre of Finland, about 600,000 tons of pyrolysis oil a year (250 ktoe, i.e. an amount of energy equivalent to about 3 TWh) could be produced from forest residues when integrated with heat and power production. This corresponds to about one fourth of the current use of heavy fuel oil. However, pyrolysis oil production competes for forest residues with energy production and with the planned BTL plants producing diesel from forest residues.

Pyrolysis oil production is advancing mainly through investment subsidies. Additionally, in energy taxation, pyrolysis oil is deemed a tax-free product.

Additional information

CEO Timo Saarelainen
tel. +358 40 7076640


Green Fuel Nordic Oy is a Finnish biorefining company. The company’s business idea is to utilize commercially proven RTP™ technology for the production of second-generation bio-oil from local, renewable, forest-based biomass. The off-take is a liquid, low-carbon and sulfur-free bio-oil that can directly replace light and heavy fuel oil in renewable energy applications. In the upcoming years, Green Fuel Nordic Oy aims to build several biorefineries in Finland. The company, established in October 2011, is headquartered in Kuopio,

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