Viru Keemia Grupp (VKG) is initiating a local government special spatial plan intending to explore the possibilities of establishing a modern bioproducts production complex in Ida-Viru County to create added value for pulpwood generated in Estonia and produce bioproducts and renewable energy. The expected volume of investments is Euro 800 million and production would start to operate in 2026 at the earliest.
According to VKG’s Chairman of Management Board, Ahti Asmann, Estonia needs a modern bioproducts production complex for adding value to pulpwood and Ida-Viru County has the prerequisites for establishing such a complex.
“The establishment of a bioproducts complex would boost the diversity of the Estonian and Ida-Viru economy and the fulfilment of environmental goals while meeting the ever-increasing global demand for bioproducts,” Asmann said, adding that the establishment of the complex would constitute a leap in the value addition of wood in Estonia, partly also replacing the current export and burning of wood.
As raw materials, the production complex will produce dissolving pulp, pulp, tall oil and renewable energy, bio-fertilisers and growth promoters. As for end products, the complex will produce raw materials for various fabrics (viscose fabric) for the textile industry, as well as bioplastics and additives for the paint, solvent, pharmaceutical, cosmetics and food industries.
VKG estimates that the expected volume of investments is up to Euro 800 million and the establishment of the complex would create 250 new well-paid jobs, with at least another 1,000 new indirect jobs in the overall production chain.
The future production would use the flexible KRAFT technology which is the best available technique (BAT) for the chemical processing of wood pulp.
VKG has conducted preliminary environmental studies for analysing the idea and the Nordic consultation firm AFRY has performed a preliminary feasibility study.
