Joensuu Biocoal Oy is constructing Europe’s second largest industrial-scale biomass production plant in Iiksenvaara, Joensuu, on the site of Savon Voima's power plant. Construction began in the fall of 2023, following a slightly prolonged planning phase, and the production of the facility is scheduled to start by the end of 2024. Upon completion, the plant's production capacity at full speed will be approximately 60,000 tons of biocoal per year.
The plant will directly employ several dozen people during the construction and up to 100 indirectly when in operation, through raw material supply, production, procurement and logistics.
During the construction phase, the estimated employment impact is about 60 person-years, and during operation, the plant will employ directly 10-12 people in operational and maintenance roles. Indirect employment effects are estimated to be around 120 people, through the biomass procurement and logistics, for example.
Initially, the plant will produce biocoal primarily to replace coal and thus reduce CO² emissions, as a raw material and energy source for industrial processes such as steel and cement production. However, the future focus will be on more applications with even higher environmental benefits like in carbon capture, and as soil improvement or stormwater filtration.
Joensuu Biocoal Oy produces biocoal from by-products of domestic, sustainably certified forestry industry, such as bark and wood from first thinnings. The torrefaction process converts materials previously used mainly for energy into a commercially viable raw material for heavy process industries.
Biocoal is a potential solution for achieving carbon neutrality in industry. The end-product can be used in various process industry applications, including energy production with existing equipment, without significant investments. In the future, the solution opens up new opportunities for permanently capturing carbon away from the atmosphere.
The financing for Joensuu Biocoal's production plant comes from domestic investment companies and the Finnish Climate Fund. The project also receives support from the European Regional Development Fund.