VKG group will invest 800 million euros to build a biological product plant (biomass refinery) in Estonia

Verukeemia grupp (VKG), a large industrial enterprise in Estonia, is launching a special plan to explore the possibility of establishing a modern biological product factory in IDA viru County, Estonia, create greater added value for Estonia’s forestry resources and produce biological products and renewable energy. The total investment is expected to reach 800 million euros and will be put into operation as early as 2026.

Ahti asmann, chairman of the board of directors of VKG, said that Estonia needs a modern biological product factory to increase the added value of domestic timber, and Ida viru county is rich in forestry resources and has the preconditions for establishing a biological product factory. The establishment of biological products factory will further improve the diversity of Estonian economy, be conducive to environmental protection, and meet the growing global demand for biological products.

VKG hopes to strengthen the cooperation with local communities during the construction process, and plans to cooperate with the local government to launch the special space plan of the local government, so as to ensure that the construction area is as far away from residential areas as possible.

After the completion of the biological products factory, it will mainly produce dissolved pulp, pulp, tall oil and renewable energy, biological fertilizer and growth promoter, as well as raw materials for various fabrics (such as viscose fabrics) used in the textile industry, as well as bioplastics and additives used in paint, solvent, pharmacy, cosmetics and food industry. The development of biological products factories will also provide possibilities for the production of biofuels and specialized chemical products, such as the production of plasticizers, adhesives, phenols, polyester, hydrogels, antioxidants, etc. According to different products and raw materials, the total output of the biological products factory is expected to reach 330000-500000 T / A.

According to preliminary estimates, the establishment of the biological product plant will increase Estonia’s renewable energy by 730gwh per year, half of which will be used for sale and half for local district heating. The establishment of biological products factory will create 250 new high paying jobs, and at least 1000 new indirect jobs will be added in the whole production chain.

All comprehensive facilities of the plant will meet the most stringent requirements of EU on air purity and water treatment and use environment. It is estimated that 12.5 million m3 of water will be used every year, and the used wastewater will be discharged to the Gulf of Finland after being treated by the water treatment plant.

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Post time: Aug-19-2021

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