Estonia\u2019s bioindustry is ready for its next leap, where biomass valorization and innovation open doors to sustainable economic growth and global competitiveness.<\/p>\n","protected":false},"author":4,"featured_media":9972,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[249],"tags":[420,419,422,538,408],"class_list":["post-10693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion","tag-bioproduction","tag-biorefinery","tag-energy","tag-energy-sector","tag-green-transition"],"acf":{"postbuilder":[{"acf_fc_layout":"text","type":"text","text":"
My previous position was in the bio-based industries unit that coordinated the work of the joint undertaking between the European Commission and the Bio-based Industries Consortium \u2013 now known as the Circular Bio-based Europe Joint Undertaking. My tasks included analyzing the sustainability of biomass, based on the premise that demand for biofuels and bioproducts would continue to grow.<\/p>\r\n
I reviewed over a hundred studies, which showed that during periods when widespread biomass use was projected, the global availability of usable biomass was estimated to be roughly twice as high compared to times when bio-based products were not seen as serious competitors to fossil fuels. The conclusion: when interest deepens, humanity tends to discover additional bioresources.<\/p>\r\n
Before the last decade shift, the general mood around biomass utilization was rather pessimistic. The main area of use \u2013 bioenergy \u2013 faced dim prospects due to the rapid rise of renewable electricity. Global investments in liquid biofuel production, which peaked at over $25 billion in 2006 and 2007, dropped dramatically.<\/p>\r\n
However, it might be more accurate to say that the sky above what was seen as \u201cscarce\u201d biomass began to clear. The broader picture was reshaped by the uptake of electric vehicles and the promising future of solar and wind energy. \u201cBiomass\u201d was released from the expectation of having to meet the world\u2019s energy demand \u2013 especially since even growing needs could not have been met by the planet\u2019s resources alone.<\/p>\r\n
Now that biomass is no longer at the center of energy strategies, discussions about its adequacy are gradually fading. In forest-rich Estonia, there is still enough woody biomass available even when nature protection areas are excluded. The main issue is not about quantity, but direction: shifting from burning wood to producing bioproducts.<\/p>\r\n
Graanul Invest, Europe\u2019s largest wood pellet producer and an Estonian company, will eventually have to scale back its longstanding business as market demand declines. Wood-burning heating systems are gradually being replaced by heat pumps as technology advances and electricity prices fall.<\/p>\r\n
In the UK, the last coal plant was closed at the end of September, and attention is now turning to the country\u2019s largest power station, Drax \u2013Europe\u2019s leading consumer of wood pellets, primarily imported from the U.S. In Denmark, where pellets are also burned in large volumes, the final phase of the energy transition is expected after new offshore wind farms come online. Energy giant \u00d8rsted closed its last coal plant last autumn, and only one remains operational in the country.<\/p>\r\n
The phase-out of wood burning in large power plants is a logical step on the path to reducing air pollution. For Graanul Invest, this trend comes as no surprise \u2013 their \u20ac250 million investment to convert the Langerlo coal plant in Belgium to wood fuel ended in bankruptcy in April 2017 due to local opposition.<\/p>\r\n\r\n
\r\nThe phase-out of wood burning in large power plants is a logical step on the path to reducing air pollution.<\/p>\r\n<\/blockquote>","image":null,"align":""},{"acf_fc_layout":"image","image":9970},{"acf_fc_layout":"text","type":"text","text":"
Black swan \u2013 or in Estonia\u2019s case, the black stork?<\/h4>\r\n
Investment failures caused by exceptional events are often described as black swan appearances. Lauri Ulm, project lead for Enefit Green\u2019s most important investment \u2013 the Sopi-Tootsi wind farm \u2013 recalled how the discovery of a black stork nest nearby led to sleepless nights: \u201cLuckily, it turned out to be unused and unsuitable for nesting.\u201d In Estonia, the black stork, capable of unexpectedly nullifying all efforts, might in fact be a more fitting symbol than the swan.<\/p>\r\n
For advocates of bio-based industry, the unexpected opposition in Tartu to the construction of Estonia\u2019s own large-scale biorefinery came as an unpleasant surprise. Although rational arguments against the plant quickly ran out, one trump card remained: the smell. Indeed, the production of wood sugars can be noticeable at close range, but the more modern the facility, the less any odor lingers. Today, every component of wood is utilized, and to detect any smell, one would likely need to step through the plant\u2019s gates.<\/p>\r\n
Just as with wind farm development hurdles, Estonia\u2019s biorefining sector has effectively lost a decade. Fibenol\u2019s decision to build its first full-scale plant just south of Estonia should be seen in the context of the prolonged debates in the Tartu region.<\/p>\r\n\r\n
There are role models to look up to when making decisions<\/h4>\r\n
Finland has been advancing biorefining for years, achieving internationally significant results and establishing over ten plants. The Finns were also among the pioneers in biofuel production (Neste), gaining valuable experience in navigating political shifts. Despite shrinking markets for biofuels in the coming decades, production continues \u2013 particularly for marine and aviation fuels, where demand is expected to remain.<\/p>\r\n
Much like in the wind energy sector, our northern cousins have pressed forward steadily in developing bioproduct facilities. The only major setback has been the closure of border-area plants dependent on Russian wood.<\/p>\r\n
During the now-famous \u201cTartu saga,\u201d Finland was frequently cited as a role model, especially the Mets\u00e4 Fibre bioproduct mill in \u00c4\u00e4nekoski, completed in 2017 at a cost of \u20ac1.2 billion. The latest addition to this lineage is the Kemi bioproduct mill, inaugurated by Finland\u2019s president on 23 October, though it had already begun production a year earlier. Mets\u00e4 Fibre\u2019s largest investment to date, this \u20ac2 billion project is expected to generate around \u20ac500 million in annual tax revenue and a similar increase in exports for Finland.<\/p>\r\n\r\n
\r\nFinland has been advancing biorefining for years, achieving internationally significant results and establishing over ten plants.<\/p>\r\n<\/blockquote>","image":null,"align":""},{"acf_fc_layout":"image","image":9966},{"acf_fc_layout":"text","type":"text","text":"
The main bioproduct of both plants remains cellulose, used to manufacture consumer paper and cardboard. By-products such as tall oil and turpentine can be compared to crude oil \u2013 Mets\u00e4's partners separate different-use fractions from the complex mix of liquid molecules. This creates a diverse industrial ecosystem around Mets\u00e4's bioproduct mills, strengthened by a \u20ac20 million grant through Fortum and the Business Finland program.<\/p>\r\n
Around the major companies, nearly a hundred partners have gathered to develop their own products through mutual support and collaboration. True, it may still take years for these partners to bring their products to market.<\/p>\r\n
At the same time, smaller developers received an additional \u20ac50 million in support from the Finnish government. A standout example of R&D and startup innovation is the production of textile fibers from wood \u2013 the most well-known application being a dress worn by the Finnish president\u2019s spouse at the Independence Day reception. Last spring, construction began on a textile fiber production unit adjacent to the Mets\u00e4 bioproduct mill.<\/p>\r\n
In addition, the French environmental services company Veolia is currently building a methanol plant next to the \u00c4\u00e4nekoski mill to purify by-products from the cellulose production process. Lignin \u2013 the \"glue\" that binds wood\u2019s cellulose fibers \u2013 also offers broad application potential. A lignin refining demo plant using cutting-edge scientific research is scheduled to open in \u00c4\u00e4nekoski within a year.<\/p>\r\n
The \u00c4\u00e4nekoski plant produces 1.8 terawatt-hours of electricity per year \u2013 250% more than it consumes \u2013 with a generating capacity of 260 megawatts. The newer Kemi bioproduct mill has a slightly higher output of 2 terawatt-hours annually. Both plants generate nearly as much electricity as Estonia\u2019s 300-megawatt nuclear reactor project, which has received political support but would consume a portion of its output internally.<\/p>","image":null,"align":""},{"acf_fc_layout":"text","type":"text","text":"
Together, two bioproduct mills could offer a viable alternative to a nuclear power plant in Estonia. The key would be finding a solution that allows all steam to be redirected toward electricity production during calm winter weeks with little wind, while focusing on bioproduct manufacturing during summer periods when cheap electricity is abundant.<\/p>\r\n
Such a solution would avoid the need to hire dozens of regulatory officials and allow scientists and lecturers to focus on better utilizing Estonia\u2019s forests rather than developing nuclear expertise. Moreover, the Kemi bioproduct mill aims to achieve zero waste by the end of the decade \u2013 an undeniable advantage over a nuclear power plant.<\/p>\r\n\r\n
\r\nTogether, two bioproduct mills could offer a viable alternative to a nuclear power plant in Estonia.<\/p>\r\n<\/blockquote>\r\n
Bioproduct development in Finland is led by the applied research center VTT, which secured as much funding from the previous EU research and innovation program Horizon 2020 as all Estonian institutions and companies combined. Starting this year, VTT is also the only European participant in two U.S. National Science Foundation global centers programs focused on biomaterials and food.<\/p>\r\n
VTT\u2019s Bioruukki pilot facility specializes in bioproduct development \u2013 a site I had the chance to visit at my own expense last spring. The facility offers companies and startups a wide range of equipment to refine their bioproducts and optimize production processes. This enables smarter decisions before investing in expensive production technology. In addition to numerous testing units, developers benefit from expert advice and support, making the development process more efficient and less risky.<\/p>","image":null,"align":""},{"acf_fc_layout":"image","image":9976},{"acf_fc_layout":"text","type":"text","text":"
Developing the bio-based sector: European Commission, entrepreneurs, researchers, and universities<\/h4>\r\n
Phasing out oil is, in principle, inevitable. While a decade ago there were (justified) concerns about whether there would be enough wood and other biomass to replace oil, today excellent solutions that reduce oil use in transport and heating are spreading rapidly.<\/p>\r\n
Science has advanced in multiple directions and with greater depth in developing the know-how needed for large-scale bioproduct manufacturing. Unfortunately, bioproducts still struggle to compete on price with fossil-based alternatives. As a result, many bioproducts reach the market in modest forms \u2013 primarily as packaging, disposable cups, wrapping materials, and other small-scale applications.<\/p>\r\n
To enable widespread adoption of bioproducts, we must address how to assess and account for their environmental benefits. Replacing fossil-based products with bio-based ones helps preserve fossil carbon underground. At the same time, bioproduct manufacturing and forest regrowth can help reduce atmospheric CO\u2082 \u2013 provided that emissions from the production process are effectively captured.<\/p>\r\n
In addition to a carbon tax, a so-called fossil tax could be introduced on products made from oil or fossil gas. Revenues from this tax could be directed toward the development, production, and marketing of bioproducts \u2013 accelerating the transition to more sustainable alternatives.<\/p>\r\n
In the innovation annex to last summer\u2019s European Semester report on Estonia (the EU\u2019s mechanism for coordinating economic and fiscal policy), I highlighted the importance of processing Estonia\u2019s most valuable natural resource \u2013 wood \u2013 into bioproducts. I also emphasized the need for systematic investment in research and innovation. Wood-related topics fall under the \u201cvalorization of local resources\u201d focus area in the TAIE 2035 roadmap (Estonia\u2019s strategy for research, development, innovation, and entrepreneurship).<\/p>\r\n
The European Commission is now more determined than ever to support the growth of the bio-based industry aimed at replacing oil-based products. In March last year, several initiatives were presented to strengthen biotechnology<\/a> and the bio-based industry in Europe. Commission President Ursula von der Leyen tasked the health commissioner with drafting a European biotechnology regulation. Meanwhile, the commissioner for the environment and circular economy is responsible for preparing a new bioeconomy strategy that will become part of the broader Circular Economy Law.<\/p>\r\n
The EU\u2019s Strategic Technologies for Europe Platform (STEP<\/a>), which supports innovative investment, also includes the bio-based industry. In addition, the European Commission is facilitating market access for bioproducts by adjusting industrial and internal market rules on standardization and public procurement.<\/p>\r\n\r\n
\r\nThe European Commission is now more determined than ever to support the growth of the bio-based industry aimed at replacing oil-based products.<\/p>\r\n<\/blockquote>","image":null,"align":""},{"acf_fc_layout":"image","image":9994},{"acf_fc_layout":"text","type":"text","text":"
Estonia\u2019s bio-based momentum is picking up again<\/h4>\r\n
Despite a period of stagnation, the era of wood refining and bioproduct manufacturing appears to be gaining new momentum in Estonia. Viru Keemia Grupp (VKG) is planning to build a facility in L\u00fcganuse municipality, Ida-Viru County, focused on the chemical processing of wood and the production of bioproducts. Fibenol, meanwhile, is not limiting itself to its plant in Latvia \u2013 if successful, additional facilities are planned elsewhere, including Estonia.<\/p>\r\n
Alongside VKG Fiber and Fibenol, a subsidiary of the Singapore-based Tolaram Group \u2013 Horizon, which produces pulp and paper in Kehra \u2013has also recently applied for a contract to purchase low-value state forest timber. Other players have emerged as well: the Norwegian company Biojet, with ExxonMobil as a stakeholder, is planning a green fuels plant in Estonia, while Dutch company Power2X aims to establish a large biomethanol facility in P\u00e4rnu.<\/p>\r\n
In the field of bioproduct development, the furthest progress in Estonia has been made by Fibenol, a subsidiary of Graanul Invest. I have had the opportunity to follow their activities closely over the years and have visited their demo plant in J\u00e4rva County several times.<\/p>\r\n
Fibenol is the most successful Estonian company in securing support from the EU\u2019s Horizon research programme. Through several projects and the European-level joint undertaking, the company has successfully attracted over \u20ac20 million in funding \u2013 and the success story continues.<\/p>\r\n
At the heart of this progress is Fibenol\u2019s Head of Development, Peep Pitk. The demo plant in Imavere is one of the 16 \u201cflagship\u201d initiatives within the EU\u2019s Circular Bio-based Europe Joint Undertaking, offering a unique and pioneering solution.<\/p>\r\n
Since launching operations, the plant has initiated several new pan-European collaboration projects, enabling Fibenol to bring its products to market. In addition to refining wood sugars, the company is also developing a wide range of lignin-based products with partners \u2013broadening Fibenol\u2019s bioproduct portfolio.<\/p>\r\n\r\n
\r\nFibenol is the most successful Estonian company in securing support from the EU\u2019s Horizon research programme.<\/p>\r\n<\/blockquote>","image":null,"align":""},{"acf_fc_layout":"image","image":9981},{"acf_fc_layout":"text","type":"text","text":"
A new generation of bio-innovation: from university labs to industry<\/strong><\/h4>\r\n
Another undeniable success story is \u00c4io, a startup grown out of Tallinn University of Technology. Last spring, I visited their lab, where a group of young scientists are working with remarkable dedication. \u00c4io was recently featured in Trialoog<\/em> with the headline \u201cBiotech company \u00c4io raised six million euros for a demo plant.<\/a>\u201d<\/em> One particularly inspiring idea is the plan to produce food products from wood residues \u2013 an initiative being explored in collaboration with Fibenol.<\/p>\r\n