Metsä Group aims to use all production side streams as either materials or energy. This resource-efficient approach took another step forward when Montinutra Ltd announced the launch of a pre-engineering project for a new production plant alongside Vilppula sawmill. Montinutra is part of the investment portfolio of Metsä Group’s innovation company Metsä Spring. The project’s launch was sealed with funding of EUR 7 million granted by Business Finland in January 2023. Business Finland is a Finnish public-sector business operator that offers internationalisation and funding services to companies. The investment costs of the planned production plant are estimated at approximately EUR 20 million. Montinutra’s Managing Director Jaakko Pajunen describes Business Finland’s funding decision as a significant gesture from the public sector and a sign of strong support for the circular economy. “Plant projects are huge investments. The funding from Business Finland lowers the threshold for other investors to fund this project and contributes significantly to its implementation,” he says.
Rapid scalability possible
The main raw material for the new production plant, due to be constructed next to Vilppula sawmill, will be spruce sawdust generated as a side stream at the sawmill and currently used mainly in bioenergy production. The production process uses hot water extraction, where the raw material is processed under high pressure and temperature. The zero-waste process features closed-loop water circulation and energy recovery. “The forest industry has traditionally been focused on cellulose fibre. The other parts of the tree, more than half of which are hemicellulose and lignin, have received less attention. We will use these to develop future biochemicals,” says Pajunen. In the first stage, the Vilppula production plant will be able to refine 10,000 tonnes of sawdust annually. Pajunen says Montinutra is prepared to double or triple production volumes later. “In terms of scalability, it is extremely important to have an industrial partner like Metsä Group that can safeguard the first part of our value chain. The fact that we do not have to build a raw material network from scratch gives a considerable boost to our scalability.”
A value proposition based on fossil fuel-free operations
Pajunen divides the biochemicals to be produced at Vilppula into four categories: sugars, lignins, fibre products and dust binding products. Montinutra will launch the products under its Boreal Bioproducts® brand. “These are all new biochemicals, so we have intentionally opted for a broad development portfolio.” Montinutra’s value proposition is based on fossil fuel-free operations, the circular economy and sustainability. The products can be used in technical chemistry to replace fossil polymers and reduce the carbon footprint of products. As their raw material consists of industrial side streams, production does not compete for land with food crops. In terms of sustainability, another important factor is that the origin of the raw material can be traced from end to end.
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