"Fibenol Latvia Ltd will start feasibility and environmental impact studies on a 26-hectare plot of land in Valmiera Industrial Park... in order to determine its suitability for the construction of a potential biorefinery," Fibenol said in a press release.
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.
Valmiera Industrial Park is an area of 102 ha, which is being developed by the municipality of Valmiera region in several stages.
"A successful feasibility study would result in production commencing around 2030,"Fibenol said. The size of the potential investment was not mentioned in the press release, but the LETA news agency stated that it could be worth up to 700 million euros.
In Imavere, Estonia, the company already has a successful pilot plant that 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," said 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.”
“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," said Jānis Baiks, Chairman of the Valmiera Municipality.
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).
Fibenol Latvia Ltd is a subsidiary of Fibenol OÜ, established to expand the Group's activities in Latvia.
