Biochar and Synthetic Fuels - Enablers of New Industrial Activities in Lapland

The project aims to support sustainable development and climate change mitigation while creating new business opportunities in Lapland. It is a collaboration between Kemin Digipolis Oy and the Natural Resources Institute Finland (Luke).

Biochar is emerging as a crucial carbon sink for the future, with diverse applications in industries, agriculture, and green construction. This opens up significant commercial opportunities around biochar. The project will promote awareness of biochar and facilitate its production and use in Lapland, where there is abundant biomass for its production. For instance, old peat production areas could be utilized for willow cultivation and subsequent biochar production. Synthetic fuels have become important for mitigating climate change. Hydrogen and synthetic fuels offer several advantages over fossil fuels and can serve as excellent means of storing and transferring hydrogen. The project will investigate and support investments in synthetic fuel production in Lapland, which has ample renewable energy sources and significant heavy industries that support the establishment of synthetic fuel production in the region.

The project's target audience includes industrial and municipal actors, small and medium-sized enterprises and logistics companies, agricultural and forestry sector businesses, as well as energy sector companies in Lapland. The project's results will provide information on the production and use of biochar and synthetic fuels. This will assist decision-makers in strategic decision-making, business development, and promoting sustainable development in the region. The project's indirect beneficiaries include broader societal actors such as authorities, policymakers, and investors interested in renewable energy solutions and sustainable development.

The project aims to support Lapland's green transition, promote regional energy self-sufficiency, and enhance resource efficiency. It will increase knowledge for regional actors working in areas such as heat production and logistics. The project will also assess the availability and sustainable utilization of biomass, helping businesses identify new business opportunities and evaluate sustainable harvesting volumes of forest resources. In addition to assessing harvesting volumes and forest utilization possibilities, the project aims to provide information on the future utilization potential of areas exiting peat production.

The maximum amount of aid for the whole project is 470,818 euros, of which a maximum of 58,443 euros was granted to the Natural Resources Institute Finland. The total net eligible costs of the aid will not exceed 80% of the eligible costs of the project.