Taaleri is preparing a new bioindustry project

TAALERI PLC PRESS RELEASE 21 DECEMBER 2020 AT 3 PM

Taaleri Plc and Savon Voima Oyj announce cooperation – Taaleri’s first biocoal plant planned in Joensuu

Taaleri is preparing a bioindustry venture to build a new biocoal plant in Joensuu. The plan is that customers will also be able to invest in the project at a later stage. Torrefied biocoal is replacing coal in energy production and other industries. Biocoal can also be used for soil improvement and water treatment.

Around the world, fossil raw materials are gradually being phased out. Finland has passed a ruling that prohibits the use of coal, the most harmful of all fossil raw materials, for the production of electricity and heat from 2029 on. A clear majority of Finnish energy producers are already aiming to give up coal by 2025. Biocoal is an environmentally friendly raw material choice for energy producers. Biocoal combustion is emission-free, and emissions from the biocoal logistics chain and production account for just a fraction of the equivalent emissions with coal.

Taaleri plans to build its first biocoal plant in Joensuu, Finland, on Savon Voima Oyj’s Iiksenvaara power and heat plant site. Taaleri has signed an agreement with Savon Voima Oyj on the purchase of services and the lease of the site and of certain equipment.

The parties have also agreed to establish a joint biomass procurement company to enhance and secure the supply of raw material. Joensuun Biohiili Oy, a company founded by Taaleri for the project, will be a minority shareholder in the biomass procurement company.

It is estimated that the biocoal plant will launch operations in 2022, with a total annual biocoal production of some 60,000 tons. The plant utilises forest industry side streams and forestry residues. The use of biomass, or small-diameter stem and wood chips and bark, totals approximately 250,000 cubic metres annually. The investment is valued at some MEUR 15. In addition to decisions by the companies’ Boards of Directors, the realisation of the project depends on financial support funding decisions.

The aim is to build a cluster around the Joensuu biocoal plant, including development cooperation partners such as the Natural Resources Institute Finland (Luke), University of Joensuu, Karelia University of Applied Sciences and Business Joensuu. Through the strong research and development cooperation within the cluster, the Joensuu biocoal plant will be a global leader in product development and new biocoal application implementations, such as in the use of biocoal for soil improvement and water treatment as well as in various ways to utilise activated carbon.  

"Cooperation with Taaleri brings significant synergies in terms of staff and facilities as well as biomass procurement. The project also creates new jobs in the Joensuu region and supports our strategy to promote carbon-neutral production. We are very pleased with our new innovative cooperation with Taaleri,” says Savon Voima Oyj CEO Arto Sutinen.

"The project under preparation fits perfectly with the City of Joensuu’s strategic goal of being a world-class expert in the utilisation of renewable natural resources and the circular economy,” says Mayor of Joensuu Kari Karjalainen.

Taaleri is planning to invest in several biocoal plants in the future

Taaleri Plc plans to build more biocoal plants in the future, possibly also elsewhere in Europe and North America.

"For over a decade now, Taaleri has systematically invested in renewable energy production, such as wind and solar energy. In bioindustry, Taaleri has already invested in a biorefinery, which processes tall oil mainly for the production of biodiesel. Biocoal complements our impact investing portfolio. We are very pleased with the great cooperation with Savon Voima in this project,” says Taaleri Plc CEO Robin Lindahl.

For further information, please contact:

Robin Lindahl, CEO, Taaleri Plc, +358 50 595 9616, robin.lindahl@taaleri.com

Arto Sutinen, CEO, Savon Voima Plc, +358 44 703 3130, arto.sutinen@savonvoima.fi

Taaleri in brief

Taaleri is a Finnish financial services company, whose parent company, Taaleri Plc, is listed on Nasdaq Helsinki main market. The Taaleri Group comprises three business areas: Wealth Management, Insurance, and Energy. In addition, the Group makes investments from its own balance sheet. At the end of June 2020, Taaleri had assets under management totalling EUR 7.1 billion and 5,700 wealth management customers. Taaleri Plc has some 5,200 shareholders. Taaleri’s operations are supervised by the Finnish Financial Supervisory Authority.

More information about our company and services: 
www.taaleri.com/en
www.taalerivarainhoito.com/en
www.taalerienergia.com
www.taalerikapitaali.com/en
www.garantia.fi/en

www.fellowfinance.fi/en

Minna Smedsten, Chief Financial Officer, tel. +358 40 700 1738, minna.smedsten@taaleri.com