Finland-based bio-fuel company Forest BtL has granted €5m front-end engineering and design (FEED) contract to French engineering company Technip for its biomass plant.

The second generation biomass-to-liquid (BTL) plant in Ajos Island in Finland is expected to produce 140,000 tons of biodiesel and naphtha using wood and wood processing by-products as feedstock.

Under the contract, Technip will facilitate the process design package of the hydrogen production unit of the plant, alongside FEED for the hydrogen production, Fischer-Tropsch synthesis and refining units.

To undertake the Ajos plant work, Technip’s operating center in Lyon, France will collaborate with Forest BtL’s technology center located in the Netherlands.

The one-of-its kind BtL plant is a part of European Union NER300 funding program to support renewable energy technologies.

Completion of the project is expected during the first semester of 2014.