Investors
Fintoil’s Hamina biorefinery started its operations at the end of 2022. Fintoil refines Crude Tall Oil (CTO), a by-product of the kraft pulp process, into multiple different products that range from crude fatty acids for the production of second-generation renewable diesel to biochemicals for the needs of the chemical industry, the food industry, and the pharmaceutical industry.
”The annual processing capacity of the biorefinery is 200,000 tons of raw material. Fintoil is aiming for a turnover of 150 million euros, and currently employs 33 people directly. Fintoil’s refinery uses Neste Engineering Solutions’ patented NEXPINUS™ technology, which enables a 40 percent lower energy consumption compared to a traditional tall oil refinery. Fintoil’s biorefinery is the third largest crude tall oil refinery in the world.”
In June 2021, Fintoil Oy actualized an EUR 70 million green senior bond issue and received a binding credit commitment for an SSRCF with a credit limit of EUR 10 million. Fintoil has so far raised a total of around 130 million euros in equity and debt financing for its Hamina biorefinery investment. In addition to the bond and credit line, the financing consists of an EUR 40 million preferred equity instrument and EUR 11 million equity financing. The project, completed at the end of 2022, was thus fully financed.
The issued green senior bond is collateral and has a duration of four years. The interest rate on the bond is a fixed 7.5 percent. The funds obtained with the green bond will be used in full for the biorefinery investment in accordance with the company’s green financing reference framework. In the same context, Fintoil also received a binding credit commitment for a multi-year SSRCF (Super Senior Revolving Credit Facility) credit limit. The credit limit is mainly intended for the company’s working capital financing, and it will be used to foremost finance the company’s raw material purchases.
The new biorefinery accelerates Finland’s and the EU’s efforts to achieve carbon neutrality, since the carbon footprint of CTO derivatives is up to 90 percent smaller than that of fossil alternatives. Crude tall oil is classified as a sustainable raw material for advanced biofuels in the EU renewable energy directive.
With the help of Fintoil’s production, carbon dioxide emissions can be reduced by up to 400,000 tons per year, which corresponds to roughly one percent of Finland’s net emissions.