Aug. 17 (Bloomberg) -- Neste Oil Oyj and Stora Enso Oyj will not progress plans to build a Finnish renewable diesel plant that would have cost more than 500 million euros ($615 million) after it missed out on European Commission funding.
Neste Oil and paper and packaging company Stora Enso had planned to build a commercial biodiesel plant to make biowax, suitable for refining into renewable diesel, Lauri Peltola, a spokesman for Helsinki-based Stora Enso, said today by phone.
The companies applied for funding under a European Union program to finance renewable energy technologies and carbon capture and storage projects. The venture was not included in a document published by the European Commission listing the projects selected as candidates for NER 300 funds, generated from the sale of allowances to emit carbon dioxide.
“It would have represented a very significant investment and we concluded that we would not have gone ahead in any case, even if we had won public funding,” Matti Lievonen, chief executive officer at Neste, and Jouko Karvinen, CEO at Stora Enso, were both quoted as saying in a statement on Espoo-based Neste Oil’s website.
The project, with potential locations at Porvoo or Imatra, would have produced about 200,000 metric tons of renewable fuel from wood biomass a year. Trials at a pilot plant in Varkaus to make biowax were successful and the companies will continue working together on other products, according to Neste Oil.
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