China’s bioenergy giant Kaidi has unveiled plans to construct a second-generation €1bn biofuel refinery in Ajos, Kemi, Finland.

Scheduled to be operational by 2019, the refinery is expected to generate 200,000t of biofuels per year, of which 75% will be used as biodiesel and 25% as biogasoline.

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The second-generation biomass plant will use wood-based feedstock, such as energy wood, harvesting leftovers and remaining barks procured from the forest industry, to generate fuel.

The biodiesel produced by the plant is claimed to be cleaner and possesses a higher quality than its preceding generation of biofuel and can be blended with fossil diesel in any proportion.

"We find Finland the most interesting country to invest in for biofuels production in the Northern hemisphere."

Finland Ministry of Employment and the Economy permanent secretary Jari Gustafsson said: "Promoting bioeconomy and versatile use of wood are key projects for the Finnish government. In addition, ensuring foreign investments that drive export and create new jobs are also one of our key goals."

Sunshine Kaidi New Energy Group chairman and CEO Chen Yilong added: "We find Finland the most interesting country to invest in for biofuels production in the Northern hemisphere. Finland has vast biomass resources, plenty of potential partner companies and an extremely progressive biofuels policy."

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The planned biorefinery has accessed the required plans and reports charting the project’s potential environmental impact assessment approval from Vapo, who earlier had plans to build a biorefinery on the same area but later withdrew.

Additionally, the company had also been given the environmental impact assessment approval from the Centre for Economic Development, Transport and the Environment of Lapland and environmental permit application is well underway.

Kaidi is planning to acquire 33ha of land from the city of Kemi to build the plant.

The final investment decision is said to be reached by the end of the year and the building process is expected to commence in 2017.

The establishment of the refinery is expected to generate 150 full-time employments with the construction process itself roping in 4,000 manpower. Additionally, the project will create hundreds of subcontracting jobs.