Estonian firm Fibenol is channeling a massive investment of €700 million into establishing a state-of-the-art biorefinery in Latvia, marking a significant leap forward in the utilization of wood resources within the region. Despite earlier considerations for locating the facility in Estonia, as suggested by Raul Kirjanen, the company's main shareholder, a strategic decision was made favoring Latvia for this ambitious project.
On March 15, Fibenol OÜ solidified its commitment through a memorandum of understanding with several Latvian ministries—including those of economy, finance, agriculture, climate, and energy—alongside the Investment and Development Agency of Latvia (LIAA). This agreement paves the way for a €600-700 million investment initiative aimed at revolutionizing the bioeconomy through innovative green technology.
Raul Kirjanen shared his vision behind choosing Latvia, highlighting the untapped potential of Baltic wood resources and the opportunity to pioneer sustainable industrial models free from fossil dependency. "Latvia's enthusiasm for bolstering the bioeconomy and fostering innovation makes it an ideal location for our first commercial-scale biorefinery, utilizing our groundbreaking Sunburst pretreatment technology," Kirjanen remarked. This technology promises to transform up to 90% of wood feedstock into valuable biomaterials, potentially revolutionizing the chemical and materials industries by replacing fossil-based inputs.
The Latvian Minister for Economics, Viktors Valainis, underscored the project's alignment with Latvia's economic development strategies, focusing on knowledge-based bioeconomy and maximizing local wood resources. This initiative is expected to enhance the value added in the timber sector by processing lower-quality wood domestically, rather than exporting it as raw material.
The Fibenol project, which began with a demo plant in Imavere, Estonia, supported by the EU's Horizon 2020 program, has now expanded its vision to Latvia, recognizing its strong position in biotechnology and wood processing. Iveta Strupkāja, acting director general of LIAA, welcomed Fibenol's decision, noting the significant potential for research, development, and the creation of new, globally competitive products within the Latvian wood industry.
This large-scale biorefinery project not only aims to substitute fossil chemicals with sustainable alternatives on an industrial scale—a milestone previously unachieved outside laboratory settings—but also seeks to catalyze innovation across various industries, promoting the shift towards bio-based materials. The endeavor will seek additional funding, including EU Innovation Fund grants, to ensure its successful realization.
The memorandum signing is a culmination of extensive collaboration and consultations with various municipalities and stakeholders in Latvia, setting a solid foundation for this transformative project that aspires to lead the Baltic region towards a sustainable, fossil-free industrial future.