St1 teams with Swedish forestry company to produce biofuels from tall oil

In Sweden, energy company St1 and the forest products company SCA have formed a partnership to develop large-scale production of renewable fuels from tall oil. The planned production site will be St1’s refinery in Gothenburg.

The aim of the partnership is to construct a new facility to produce advanced renewable fuels from tall oil with a capacity of 100,000 tons per annum.  Construction of the new facility, subject to permission process and final approval from both companies, is expected to cost around SEK500 million to build and is planned to be operational in 2021. Tall oil is a residual product from the production of kraft pulp in SCA’s mills Östrand, Obbola and Munksund. SCA is presently expanding its kraft pulp mill Östrand and as a result the production of tall oil from the mill will increase by more than 100 per cent.