Guernsey-based sustainable energy developer Cindrigo Holdings Ltd. is advancing plans to establish a wood pellet production facility in Finland, with an initial targeted capacity of around 80,000 metric tonnes per year and a long-term goal of approximately 400,000 tonnes annually, Biomass Magazine reported.
The company outlined the proposed development, known as Fuelwood, in its second-quarter earnings report issued on September 30.
In July, Cindrigo announced that its wholly owned subsidiary, Cindrigo Ltd., had entered into an agreement with EdgeVolt Europe & Nordic Ltd. to exchange its existing lease of the energy plant at Kaipola, Finland, for a lease and option to purchase approximately 32 hectares of the Heinola industrial estate. The site includes 20,000 square metres of industrial buildings and a combined heat and power (CHP) plant.
According to Cindrigo, the Heinola facility, which includes an existing 40 MW thermal energy plant, is expected to serve as the operational base for its Finnish sustainable biomass activities. The site will support the company’s energy requirements and the planned development of the Fuelwood wood pellet facility.
Cindrigo said Fuelwood has the potential to become one of Europe’s largest sustainable wood pellet production facilities. The project is planned to begin with an annual production capacity of approximately 80,000 tonnes, with the potential to expand to around 400,000 tonnes over the longer term.
The pellet business is expected to be developed through a joint venture in which Cindrigo would initially hold a minority stake. The company said it could increase its participation over time.
The proposed facility is also expected to become an important customer for heat generated by Cindrigo’s Finnish energy operations, creating a link between the company’s energy generation and biomass production activities.
Cindrigo said its immediate priorities include advancing the installation and implementation of the Fuelwood facility and preparing the associated energy operations. However, the company identified funding as the principal constraint affecting the pace of project development.
The proposed investment would expand Cindrigo’s presence in sustainable biomass, with wood pellets intended to support energy applications while integrating the planned production facility with existing industrial and energy infrastructure in Finland.
