FAQ
Product information
Biorefinery Östrand will have a production capacity of 185,000 tonnes of sustainable aviation fuel (SAF) and 50,000 tonnes of naphtha. The SAF will have the same specifications as Jet A1 fuel.
This can be used as a biofuel component in the road transport sector or as a compound in the chemical industry. We also see potential to offer the plastics industry a more sustainable, renewable alternative to replace fossil raw materials with renewable naphtha.
Growing trees capture and bind carbon dioxide. The more trees grow, the more carbon they bind. By utilizing forest by-products as renewable raw material to manufacture bio-based products, we replace alternatives that leave a much bigger carbon footprint. By-products from the forest industry such as saw dust and bark can be used for biofuels. Fossil carbon therefore stays in the ground and forests remain vigorous and growing.
Before products are made available on the market, Biorefinery Östrand AB will ensure its products, including the feedstock supply chain, are ISCC-certified.
Feedstock
The planned biorefinery will use residues from forest operations and the forest industry, mainly wood pellets, made of sawdust. and bark from our joint venture partner SCA’s sawmills and pulp- and paper mills, to produce SAF and renewable naphtha.
The feedstock will primarily be sourced from our joint venture partner SCA’s forest industry operations near the planned biorefinery. All SCA’s forest holdings are sustainable managed and are FSC and PEFC certified.
Yes, feedstock for the planned biorefinery is made up of by-products from our joint venture partner SCA’s forest industry operations such as sawdust and bark, which is included in the EU’s most recent energy directive (RED III) and fully compliant with it.
The biorefinery will be supplied with sawdust, bark, and wood pellets from our joint venture partner SCA’s operations. SCA is Europe’s largest private forest owner with 2.7 million hectares of forest, primarily in northern Sweden, and extensive forest industry operations.
Climate benefits
The EU has set an ambitious timeline to increase the share of SAF. From 2025, the share of SAF in aviation fuel should amount to 2 per cent, increasing to 70 per cent by 2050. By using biomass by-products from the forest industry, Biorefinery Östrand will contribute to the de-carbonisation of the aviation industry and other industries.
According to the set method used by the EU Innovation Fund, Biorefinery Östrand will achieve a GHG emission avoidance of 8.7 million tonnes of CO2e in the first 10 years of its operation, equivalent to almost three times Sweden’s annual domestic aviation emissions.
Timeline
An investment decision has not been made yet. We develop our projects in stages to ensure that the necessary conditions to make an investment decision are in place. We have started to prepare a site in Timrå municipality for industrial use, and we have an ongoing dialog with vendors and other stakeholders to establish the necessary conditions.
We develop our projects in stages to create the necessary conditions to make an investment decision. It is too early to be sure of the final size of the investment, but it is a multi-billion euro/dollar project.
We expect that the current construction work to prepare the site for industrial use will be completed in 2025. If an investment decision is taken, construction of the biorefinery can start and be completed within a few years.
Electricity
Approximately 3 TWh of electricity will be needed for the biorefinery production processes, mainly to produce green hydrogen. To ensure deliveries, work is ongoing in two parallel tracks: 1) ensuring the production of electricity to the grid and 2) ensuring distribution to the site.
- To secure such a large volume of electricity, we have the intention to use renewable electricity generated from wind and hydro power. More than 20 per cent of Sweden’s wind energy is produced on SCA land, our partner, and their strategy is to expand in this area.
- In parallel, we are working to ensure sufficient distribution capacity to the site. We have formed a subsidiary to Biorefinery Östrand AB and applied for a concession of an exclusive power line to the biorefinery.
Jobs and opportunities
It is too early to say but a rough estimate would be around 60 jobs for daily operations once the biorefinery is operational. The number of people needed during the construction phase is much higher at around 2,000. About 660 indirect jobs will also be created in supplier industries because of the establishment of the biorefinery.
In addition, an investment would also result in many indirect jobs, which are created as surrounding communities grow and make adjustments to accommodate the new facility.
Several different professions will be needed at this type of facility. Plant operators, engineers, electrical and mechanical maintenance engineers, etc. (direct jobs).
The primary positive effect is that the production of SAF will contribute to decarbonise the aviation sector. By using products made at the planned biorefinery, around nine million tonnes of GHG emissions from fossil oil can stay underground.
The project will have a significant positive impact on the region as it will contribute to the ambitions of the energy transition. It will also enable Sweden to start domestic production of aviation fuel, thereby improving the country's self-sufficiency.
Partners
Biorefinery Östrand AB is a joint venture company owned by SCA and St1. This collaboration is based on the two companies’ shared experience, expertise, and access to the full value chain to bring the project to fruition.
SCA and St1 have worked together for several years, for example on their jointly owned biorefinery in Gothenburg that entered service in February 2024.
EU Innovation Fund
The project will proceed according to plan to create the necessary conditions and prepare for an investment decision.
Biorefinery Östrand has been granted 167 million euros to support the continued development, construction of the biorefinery and its first ten year of operation.
The EU Innovation Fund is one of the world’s largest funding programmes for the demonstration of innovative low-carbon technologies. It aims to bring to the market solutions to decarbonise European industry and support its transition to climate neutrality while improving competitiveness.
The EU Innovation Fund is funded by the EU Emissions Trading System and based on the current carbon price. It will provide around 40 billion euros between 2020 and 2030 to support projects in energy-intensive industries, renewables, energy storage, carbon capture, use and storage, and net-zero mobility and building.
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