A Dutch business in partnership with Gazprom Teploenergo is going to construct a $50 million woodworking complex with 3 different types of facilities . Which was reported by the government of Russia's Arkhangelsk region .

The development was agreed by Gazprom Teploenergo in partnership with Dutch A .Hak Renewable Energy B.V. The wood processing site is going to be constructed in the Plesetsk district in the Arkahngelsk region, which will consist of a timber production complex in Severoonezhsk , a biochar plant as well as a LVL manufacturing facility in Plesetsk. Overall combined investments are likely to come up to 3.5 billion rubles or about 45 million euros.

The development of a pellet plant contemplates the production of an advanced biofuel - black pellets also referred to as bio-char. Sawmills' by-products are going to serve as a raw material, states the statement of the. The company from Holland will be providing the technical know how to this project in Russia.

The timber plant development is in line with gradual boilers modernization in addition to their converstion to gas or biofuel program targeted by the regional authorities which expects to totally stop the utilization of imported fuel by 2025.

The principal benefit for biochar is its calorific value, quite comparable to that of coal, which can make the transformation of coal-fired boilers to the modern sort of fuel quite smooth, without any requirement for significant equipment modernization.

As outlined by Leonid Bogorad, the CEO of Gazprom Teploenergo, a fresh site will certainly generate additional jobs for the locals. He additionally emphasized that the venture which has been authorized by the chief of the region Igor Orlov. In a similar way, Gazprom Teploenergo would like to begin the facility development as early as this winter 2015. The plant should be operational by next year.

Gazprom Teploenergo guarantees the operation of 1 ,105 power facilities in 22 districts in Russia. It will be a subsidiary of gas giant Gazprom.

A .Hak Renewable Energy B.V. is a Dutch engineering company that concentrates on integrated solutions in the field of renewable energy , namely in the biocoal fuel pellets production.