02 | 2006

St1 to launch production of ethanol using a technology developed by VTT

Intelligent technology enables profitable and eco-friendly business

The energy enterprise St1 has decided to begin producing ethanol in Finland. The production will be based on a process developed by VTT Technical Research Centre of Finland. In the process, ethanol will be produced from waste generated by the food processing industry in the place of origin of the waste. The new method makes ethanol production profitable even on a small scale.

St1 Biofuels Oy, a joint venture of St1 and VTT, is currently preparing to launch its ethanol production, and the plan is to have the first production facilities operating before the end of the year.

Environmental load decreases in many aspects

The ethanol will be produced using waste from the food processing industry in the place of origin of the waste. The production process, logistics relating to fuel deliveries and the use of ethanol in fuels will help reduce carbon dioxide emissions and environmental loading. At the same time, the process offers a new solution for dealing with waste from the food processing industry and helps to significantly cut down the amount of waste.

“St1’s ethanol production will represent around two percent of the total volume of petrol sold in Finland. Alone, it is enough to meet over half of the goals that the Ministry of Trade and Industry are thinking of setting in relation to the use of biofuel components in Finland,” says Juha Kokko, Managing Director of St1.

The Kyoto Protocol and the European Union’s directives on fuels and waste management compel Finland to take radical measures in order for it to be able to reach the goals. The thinking behind St1’s ethanol production is in line with the environmental objectives and can help to promote the use of renewable forms of energy.

Potential demand for the technology abroad

The ethanol production of St1 Biofuels is based on a process developed by VTT, which makes ethanol production profitable even on a small scale in the place of origin of the waste. At least to begin with, St1 will use the ethanol it produces in the fuels that it sells at its own petrol stations, but expanding production to cater for the international market is a tempting prospect as well.

“The growth projections for the global market prices of ethanol and the costs of waste management make using this unique production concept abroad a tempting prospect. Demand is particularly high in countries where the population and therefore the amount of waste generated is large,” says Antti Pasanen, the developer of the method and Managing Director of St1 Biofuels.


Additional information
  • Tapio Koivu
  • Executive Director, Ventures
  • +358 20 722 6943
  • Antti Pasanen
  • Managing Director, St1 Biofuels Oy
  • +358 40 762 1388

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