As early as 2009, the founders of BioEnergo Oy became interested in the production of second-generation 2G bioethanol on an industrial scale from domestic wood, which did not compete with food production as a raw material. However, there was no market for advanced traffic biofuels at the time, but it soon began to happen.
The EU adopted the Renewable Energy Directive (RED I), which signaled growing concern about greenhouse gas emissions while increasing attention to reducing emissions in traffic. The RED II Directive ushered in a whole new era, as it required fuel distributors to have sufficient 2G biofuels, even with the imposition of a penalty payment. Thus, biofuel investments such as BioEnergo One may be based in part on demand generated by the RED II Directive.
Along with the positive development of the market, technology also advanced. With the support of VTT, the state technical research center, BioEnergo ended up devising a bioconversion plant in which wood biomass is decomposed by enzymatic hydrolysis. In 2016, a technology partnership agreement was signed with the Swedish company Sekab E-Technology Ab. The next significant step in technology collaboration was taken in the summer of 2020, when the Indian Praj Group entered into a partnership agreement with Sekab. Through the Praj / Sekab combination, BioEnergo has Sekab’s unique expertise in utilizing wood raw material as a biofuel and Praj’s global experience in the field of industrial bioenergy construction.
BioEnergo announced its plans for a bioconversion plant in November 2019 in Pori, which had been selected as an investment site due to its proximity to its industrial infrastructure, port and raw material sources. Satakunta’s innovation ecosystem proved to be the best place for BioEnergo to be located.
In February 2021, BioEnergo submitted an environmental permit application for the project. The bioconversion plant is scheduled for completion and start-up in 2024.