Fibenol Latvia Ltd will start feasibility and environmental impact studies on a 26-hectare plot of land in Valmiera Industrial Park which is a part of 2nd phase development of particular territory, in order to determine its suitability for the construction of a potential biorefinery. As a result of the public auction, on 27th August, a building right agreement was signed between the company and the Valmiera Municipality Government, which entitles the company to start all the necessary preparatory works for the implementation of the large-scale construction project. It should be noted that the development of the planned plant and the scale of the project is a long-term project for both parties, so that a successful feasibility study would result in production commencing around 2030.
In Imavere, Estonia, the company has a successful pilot plant which will be modelled on a commercial-scale biorefinery to convert low-quality wood into functional biomaterials. "Valmiera is a well-suited location for Fibenol's first commercial-scale plant," says Merili Palu, a Member of the Board at Fibenol Latvia. "Based on initial assessments, it meets all our key requirements: sufficient space, the potential to establish utilities to support an industrial-scale project, and solid logistical connections, including a railway link. The site's designation for industrial development is a significant advantage, and the emerging industrial park presents opportunities for synergies with other companies. Moreover, Valmiera is an evolving city that offers a good living environment."
The monitoring and implementation of the contract will be carried out in several stages, taking into account the interests of each party, the principles of good governance, as well as effective risk mitigation measures, so that the strategically important investment results in the opening of the plant, thus making a significant contribution to the country's economic development and enabling a more sustainable use of Latvia's forest resources.
"After seeing the technology used by Fibenol to produce marketable biomaterials, I am delighted that Valmiera has been chosen as the starting point for such a large, unique and innovative investment project. We are in favour of preserving the value of natural capital and using it efficiently and sustainably. The bioeconomy sector has been identified as a priority sector in the Valmiera Industrial Park to facilitate the development and production of high added value products in the Vidzeme region. We are also continuing an active dialogue with all institutions in attracting investment, so that more and more information on investment opportunities in industrial territories and sites is also available internationally. There are still opportunities for investment in Valmiera Industrial Park and there are many resources in Latvia that could be used in a more sustainable and innovative way," says Jānis Baiks, Chairman of the Valmiera Municipality Government.
It should be noted that the cooperation of Valmiera Municipality with the Investment and Development Agency of Latvia (LIAA), which has provided support in the processes of economic transformation, including by encouraging entrepreneurs from Smart Specialisation sectors to operate in the Valmiera Industrial Park, has played an important role in attracting these investments to Valmiera Industrial Park.
"If we want to raise Latvia's overall prosperity, we need to think not only about exports, but also about transforming our economy. It is important that we process resources such as wood in Latvia into high added value products that are in demand on world markets. Fibenol will develop a biorefinery in Valmiera, using the biorefining method, to produce bio-based materials from wood for road construction, various plastics, the chemical industry and other applications where petroleum products were previously used. We are delighted that Fibenol has chosen Valmiera out of several potential development areas. This is a positive signal for other investors as well," said Raivis Bremšmits, Director of LIAA.
About Fibenol
Fibenol is a cleantech company implementing innovative and patented technology to process lower-quality hardwood into functional biomaterials. These bio-based materials provide a sustainable alternative to high-footprint, non-renewable fossil-based materials and are used in products such as glues, insulation materials, biocomposites, and bitumen replacements in asphalt mixes. Additionally, these novel biomaterials help to reduce dependence on imported fossil feedstocks.
The recently commissioned demonstration plant of Fibenol in Estonia, co-funded by the CBE JU, represents a milestone in the biomaterials industry by validating new, state-of-the-art wood fractionation technology at an industrial scale. Fibenol’s biomaterials and technology are driving the development of a bioeconomy-based industry and contributing to the creation of new, innovative biobased value chains. In the long term, Fibenol aims not only to offer biomaterials but also to become a global exporter of its technology.
The planned commercial scale biorefinery in Latvia has already been granted national priority investment project status and access to fast-track Green Corridor services. The project has received strong endorsement from the national government, as affirmed by the Memorandum of Understanding signed between Fibenol and the Ministries of Economy, Finance, Agriculture, Climate and Energy of Latvian Government and the Investment and Development Agency of Latvia (LIAA). The project contributes to EU Green Deal objectives, including REPowerEU, the Net Zero Industry Act, and the EU biotech and biomanufacturing initiative.
Fibenol Latvia Ltd is a subsidiary of Fibenol OÜ. It was established to expand the Group's activities in Latvia.
