Using feedstocks such as biowaste and process residue from local bakeries and bread from shops that is past its sell-by date, the Etanolix plant will generate ethanol for transport fuel.
Currently under construction at the St1 refinery in Gothenburg, the plant will have an annual production capacity of 5 million litres of bioethanol.
St1 Biofuels business development and sales head Patrick Pitkänen said that the ethanol which is produced using technology will virtually do not generate lifecycle fossil emissions.
"Our Etanolix concept meets the growing challenges of global biofuels mandates and smart waste usage," Pitkänen added.
Etanolix plant, to be operated by the refinery, will be fully integrated into the refinery functions and logistics and is due to start up in early 2015.
NEOT managing director Henrikki Talvitie said, "By investing in biofuel production of our own, we are strengthening our sourcing of biofuels and supporting our strategy of fulfilling growing biofuels mandate."
