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, Sweden, as the company says in the press release received by Lesprom Network.
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 SEK 500 million ($57.5 million) 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%.
Based in Sweden, SCA produces solid-wood products, pulp, kraftliner, publication papers and renewable energy.
