KaiCell Fibers completed a technical-commercial feasibility study to build a new biorefinery in Finland

KaiCell Fibers completed a technical-commercial feasibility study (FS) and now getting ready for the next steps towards making the biorefinery in Paltamo, northeast Finland.

Jukka Kantola, KaiCell Fibers’s CEO, commented:

“We shall now carefully study the FS findings and prepare us for Phase II, which will include the EIA (environmental impact assessment) and further developing of novel bio-products within commercial and business structure frameworks. The FS provides an excellent base for this. Land use plan of the mill site will commence shortly, along with many other concrete steps towards our ultimate objectives. The FS-study also serves to advance the financing process, which has been gathering steam during the FS process. KaiCell Fibers Ltd is privately owned and in the process of assembling private capital as base equity for the coming investments. The financial rounds are ongoing.

The KaiCell Fibers concept is built firmly on the principles of sustainable development, and brings new ways of thinking to the bioeconomy. Mill operations are sustainably dimensioned around the raw material available in the region, reducing the carbon footprint of transportation. One of our key products will supersede toxics chemical use in major textile producing countries. One significant textile industry group is already engaging with us through a cooperation agreement. Entirely new bio-products are expected to materialise in BioFutureFactory™, an innovation park aimed at small to medium sized companies along with institutions, poised to benefit from the mill’s side-streams, utilities and infrastructure. This will create a vibrant flurry of new business activity around the biorefinery in Paltamo.”

Forest lands in the Kainuu region cover over 2 million hectares, or around 8 % of Finland’s total forested area. Out of the region’s annual growth (almost 7 million m3) about half are harvested, giving a utilisation rate well below Finland’s national level of close to 60%. Over 90 % of Kainuu’s forests are certified. At the moment, Kainuu’s fibre wood has to be hauled over long distances to reach industrial users.

Earlier KaiCell Fibers signed a Collaboration Agreement with CHTC Group from China.

About Kaicell Fibers Oy:

The company is a development establishment of the Regional Council of Kainuu and NC Capital Partners Ltd. New partner, a local agricultural and forestry foundation, joined to the company in spring 2016. The mission of the company is to find investors and to create high pulp processing for Kainuu’s softwood.

Source: Woodbizforum