French engineering firm Technip has secured €5m front-end engineering and design (FEED) contract from Finnish bio-fuel firm Forest BtL, for a biomass plant on Ajos island in Finland.

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

As per the agreed terms, Technip will develop the process design package of the hydrogen production unit of the plant, as well as FEED for the hydrogen production, Fischer-Tropsch synthesis and refining units.

Technip’s operating center in Lyon, France will collaborate with Forest BtL’s technology center in the Netherlands for the execution of the project.

The bio-fuel project is a part of European Union NER300 funding program to support renewable energy technologies.

The project is slated for completion during the first semester of 2014.