Joensuu Biocoal Oy

Torrefied Biomass, or "Biocoal" – A Renewable and Commercial Alternative to Fossil Fuels

Joensuu Biocoal Oy is a project company that is building a facility in Joensuu to produce torrefied biomass. This facility will be the first to implement NextFuel's torrefaction technology on an industrial scale, advancing the technology’s applicability and scalability for industrial use.

In the first phase, biomass will replace fossil fuels, such as coal, in industrial processes and energy production. In the future, the goal is to produce higher-value carbonised biomass for carbon sequestration purposes.

The total investment is approximately EUR 20 million, with financing from:

Construction began in autumn 2023.

The bio-industry plant is being built on the site of Savon Voima Oyj’s Iiksenvaaran power plant. Savon Voima will lease certain equipment and the building itself to Joensuu Biocoal Oy, while also providing operational and maintenance services.

A collaborative group will be established around the plant, including participants such as:

This group will focus on product development and refining new applications for torrefied biomass.

Construction, initially planned for spring 2022, was delayed due to the need to optimise the plant's designs to meet customer requirements for the final product. Construction, which began in the fall of 2023, is expected to last approximately one and a half years, with production estimated to begin by the end of 2024.

Aiming for Clean, Scalable, and Commercial Production

To halt climate change, alternative fuels that are clean, affordable, commercially viable, scalable, and renewable must be developed quickly. Torrefied biomass can directly replace existing fossil fuels without significant investments in new infrastructure. Its commercialisation accelerates industrial transition away from non-renewable resources. At a later stage, the plant aims to produce high-value carbon sequestration products for use in soil improvement and water filtration.

The transition from fossil to renewable resources involves various solutions. While wind and solar energy are expanding rapidly, they cannot fully replace coal in all industrial processes. Therefore, alternatives to fossil fuels play a significant role in the journey toward carbon neutrality.

Approximately 80% of the global energy is produced with fossil fuels

Around 80% of the world's energy is still produced from fossil fuels, with coal burning accounting for a significant portion of emissions. The rapid growth of wind and solar power is helping to reduce emissions from electricity production, but industries that rely on coal for process reactions will require torrefied biomass to achieve carbon neutrality. The torrefied biomass produced by Joensuu Biocoal Oy can directly replace coal in industries such as cement and steel manufacturing.

Underutilized Plant-Based By-Products

The side streams used in the torrefaction process are renewable raw material sources that have, until now, been primarily utilised for energy production. Joensuu Biocoal Oy’s facility will process low-value by-products from Finland’s forestry sector, mainly bark and thinning residues from sustainably sourced PEFC or FSC-certified wood, thus adding value to the forest industry supply chains. The torrefaction process increases the value of these side streams beyond their direct use for energy.

Significant Production Volumes

The planned total production capacity of the facility is around 60,000 tonnes of torrefied biomass per year. This will require approximately 200,000 cubic meters of renewable wood-based raw materials annually, sourced from Finland’s domestic forest industry and forest management side streams.

Replacing fossil fuels with the torrefied biomass produced by the Joensuu plant is estimated to reduce CO2 emissions by approximately 1.1 megatons in Finland and neighbouring regions in ten years.

Material needs: 200,000 cubic meters of biomass
Total production: 60,000 tonnes of final product

When fossil fuels are burned, they release carbon dioxide, which has been stored in them hundreds of thousands or even millions of years ago. The initial goal of using renewable biomass is to replace current fossil fuel consumption.

In the future, the aim is to explore the potential for carbon-negative production, where the carbon stored in the raw material would be permanently sequestered in the soil as a soil conditioner or through torrefied biomass used in water purification.

Joensuu Biocoal Oy aims to ensure the suitability and scalability of new torrefaction technology to an industrial scale. The material produced, biocoal, is directly commercially usable, e.g., in heavy process industry heat and energy production.