St1 and SCA form partnership to produce renewable fuels
The energy company St1 and the forest products company SCA have formed a partnership to develop large-scale production of renewable fuels from tall oil. The planned production site will be St1's refinery in Gothenburg.
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.”
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