Fortum together with UPM-Kymmene and Valmet are developing a new technology to create biomass fuels.
The companies intend to develop catalytic pyrolysis technology for upgrading bio-oil and commercialising the solution.
The five-year project, known as LignoCat (lignocellulosic fuels by catalytic pyrolysis), will produce advanced high value lignocellulosic fuels, such as transportation fuels or higher value bio liquids.
LignoCat is a natural continuation of the consortium's earlier bio-oil project together with the VTT Technical Research Centre of Finland.
This project commercialises integrated pyrolysis technology for producing sustainable bio-oil.
Under the project, the consortium targets to develop new integrated technology to produce high value biofuels to replace fossil transportation fuels.
It also enables the companies to create new business for the consortium companies.
As per studies, pyrolysis technology is seen as the most competitive route to produce advanced lignocellulosic biofuels and it is one of the effective routes to satisfy EU2020 greenhouse gas emission reduction targets.
The Finnish Funding Agency for Technology and Innovation - Tekes - is funding the LignoCat project.
The project's outcome will be a new sustainable product for the market and will significantly reduce CO2 emissions in the transportation and heating sectors.
Fortum heat business head of R&D Jukka Heiskanen said that the company is eager to continue this work towards higher value bio liquids based on the former successful co-operation with its R&D partners.
"This project is a straight continuation to our first CHP (Combined Heat and Power) -integrated bio oil investment in Joensuu and supports perfectly our strategy to increase total efficiency and value of our fleet of CHPs," Heiskanen said.
"The project's scope opens us the possibility to explore interesting new business opportunities and to define our role in the production chain of advanced biofuels."
Valmet director, technology and R&D Jussi Mäntyniemi said, "We will develop pyrolysis technology enabling improvement of bio-oil quality compatible for further refining to transportation fuels or intermediate products."