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St1 signs LoI to build cellulosic ethanol plant in Norway

St1, Viken Skog and Treklyngen Holding plan to build a cellulosic ethanol plant at former Follum paper mill in Hønefoss.

Finland-based energy group St1 Nordic Oy has via it’s Norwegian subsidiary, Smart Fuel AS, signed a Letter of Intent (LoI) with Viken Skog SA and its subsidiary Treklyngen Holding AS to build a Cellunolix ethanol unit in Norway. The intention is to build the 50 million litre per annum capacity cellulosic ethanol plant in the Follum industrial park in Hønefoss. Using local forest industry residues the plant will maximize the use of existing industrial infrastructure and equipment from the former paper-mill. An investment decision is expected in 2018 with commercial operation by 2021.

– Treklyngen is delighted to be working alongside a strong and skilled company that shares our interest in promoting and producing renewable biofuel. Together with St1, we foresee making good progress in the planning and realization of the project. There is also significant potential for achieving synergies with other projects planned at the Follum, said Rolf Jarle Aaberg, CEO of Treklyngen Holding AS.


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