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The Finnish energy firm St1 Nordic and the Swedish forest products company SCA have formed a partnership to produce 100,000 metric tons per year of fuel from tall oil, a by-product of wood pulp production. The partners plan to build a plant at St1’s refinery in Gothenburg, Sweden, at a cost of about $60 million. It is scheduled to open in 2021. SCA is currently expanding its pulp mill in Östrand, Sweden—a move that will more than double its production of tall oil.
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