Indufor signed a contract with Nefco for a project under the Finland Ukraine Trust Fund, financed by the Ministry for Foreign Affairs of Finland and managed by Nefco.
The project, Market Review and Feasibility Study of Pilot Projects for Biochar Mill in Ukraine, aims at carrying out a market study and developing a business model for greenfield biochar mills in Ukraine. The business model will be based on the raw material availability, markets and financial feasibility of the concept. This model will be tested with two pilot projects to be carried out in Ukraine. The pilot projects will be associated with sawmills who can provide the raw material for biochar manufacturing. The project started on the December 10, 2021 and is expected to be complete by November 1, 2022.
Biochar has many positive environmental impacts. It can be used in agriculture to improve the fertility and soil quality. It can also replace fossil coal, for example in the steel industry. The pyrolysis required to produce biochar is already a tested technology, and the heat generated during manufacturing process could be utilized as process or district heat. Production of biochar will also help local sawmills to respond to the new, stricter EU waste management requirements by reducing the amount of bark and sawdust dumped to landfills. In addition, the project is expected to have positive social impacts: such as improved employment possibilities in the rural areas of Ukraine, increased harvest and incomes in the agricultural and horticultural sectors. The project also aims at the creation of new business in the biomass and biochar trading.
Indufor Oy is the project leader and the contract partner with Nefco. Indufor has project experience in all five continents, including projects related to feasibility and due diligence of both greenfield and brownfield investments, market studies of traditional and emerging forest products, raw material availability and supply assessments, as well as investor and trading partner search studies.
Indufor’s partner in the project, Oy DME Solutions Ltd will act as Indufor’s subconsultant in the project. The company focuses especially on consultation of sustainable industrial solutions. Oy DME Solutions Ltd has a solid and strong background in biorefinery industrial process development and management. Our local partner is the National University of Life and Environmental Sciences of Ukraine (NUBiP) and the Department of Technology and Design of Wood Products. The Department is responsible for the educational and research functions at NUBiP, and their personnel has a solid experience in the wood products research and development projects in Ukraine.
The Finland Ukraine Trust Fund (FUTF) provides grant financing to promote the cooperation between Finland and Ukraine in the fields of energy efficiency, renewable energy and alternative types of energy sources in power and heat generation and in district heating networks.