KaiCell Fibers Oy and the Loiste companies have signed a letter of intent to develop cooperation related to energy production. The companies will work together to explore cooperation opportunities related to renewable energy production, as well as technical solutions and investment needs.
KaiCell Fibers Oy's goal is to build a bioproduct factory in Paltamo, Finland, which produces 600,000 tons of bleached pulp per year. The mill uses softwood and birch fiber wood and wood chips as raw materials. The bioproduct plant will be a major producer of bioenergy in terms of heat and electricity. The size of the plant describes that it would be possible to cover almost the entire district heating demand in the Kajaani region with the thermal energy generated as a by-product in the processes, and the electricity production capacity could meet the electricity consumption needs of the entire Kajaani region.
In connection with the bioproduct plant's wood procurement and production process, considerable amounts of biofuel are generated, which can also be utilized in Kajaani and local heating plants.
According to Hannu Heikkinen, CEO of KaiCell Fibers Oy, the letter of intent is a promising opening for utilizing KaiCell's bioenergy potential. The companies can achieve significant synergy benefits in the utilization of biofuels and the procurement of raw materials for the plant, as well as produce energy for the plant's immediate surroundings and the Kajaani region.
According to Reino Huusko, CEO of Loiste companies, the letter of intent will bring purpose to the preliminary study with KaiCell Fibers. If implemented, the energy co-operation should significantly promote the carbon-neutral heat and energy production of the City of Kajaani and the Loiste companies, as well as local co-operation in the procurement of biofuels. In addition, as a local energy company, we are interested in finding out how we can jointly design and implement the best solutions for the environment and energy efficiency.
KaiCell Fibers Oy is a company founded in 2016, with the aim of building a bioproduct factory in Paltamo. The factory area is optimally located in the middle of Kainuu's raw material resources. When completed, the mill will produce approximately 600,000 tons of bleached pulp per year, of which approximately 85% is long-fiber softwood pulp and 15% short-fiber birch pulp.
