FINLAND (News release) -- Finnpulp increases its investment assessment in bioproduct mill in Sorsasalo, Kuopio, Finland, to Euro 1.6 billion, or nearly Euro 200 million more than previously announced. The increase is based on technical studies completed during the basic design that ended in summer 2019. The amount has been updated now as the project is progressing towards investment decision and implementation. The previous estimate was made in 2016.
In addition to the increase in overall construction costs, the new cost estimate also includes a refinement of the plant plan, such as the preparation for the construction of a large bio-coal plant. With the need for Finnpulp's 6.7 million cubic meters of raw wood, the mill will have a large amount of bark, about 10% of the amount of wood. The bark produced during the summer season cannot be optimally utilized in energy production.
Finnpulp's bioproduct mill will be the world's largest softwood pulp mill. The mill is scheduled to start operation in 2021. The Euro 1.4 billion euro investment will create the annual production capacity of 1.2 million tons of pulp. Additionally, the facility will produce 60,000 tons of tall oil and one terawatt hour (TWh) of bioelectricity for the national electricity grid. The facility will use 6.7 million cubic metres of raw wood material per year.