21.05.2025
Taaleri Bioindustry has successfully developed Europe’s largest biocoal plant, operating around the clock. The idea was born six years ago. This article explains how Taaleri refined its technical expertise and scaled biocoal production to a commercial level.
The dedicated and systematic efforts are now paying off, as Europe’s largest biocoal production line begins operations in Joensuu. The production facility has started producing torrefied biomass and has been ramping up output since the beginning of the year.
Scaling a biocoal production facility to an industrial scale is a challenging project, and only a few have dared to attempt it. Taaleri Bioindustry stands as one of the world’s pioneers in developing and constructing a commercial-scale biocoal production plant. This article details how Taaleri accomplished this achievement.
Six-year project
The idea for industrial-scale biocoal production was born in 2019. The aim was to explore how to maximise the value of wood and support the transition away from fossil raw materials. Biocoal seemed like a natural extension of Taaleri’s forest funds and renewable energy funds. Additionally, this pioneering approach offered an attractive business opportunity.
The original idea was that a product refined from the by-products of the forestry industry would replace coal in energy use. However, further studies revealed that biocoal also had high-value applications. For instance, it could be a substitute for coal in hard-to-decarbonise sectors, such as the steel and cement industries.
The idea of biocoal began to generate real interest, leading to the comparison of technologies, preliminary design and the application for permits. In 2022, the project reached a point where an investment decision was made, and detailed planning could commence. It was time to order the first equipment.
The construction of the production facility commenced the following year. By the end of 2024, mechanical readiness was reached, and the next step was the commissioning process.
"The biocoal production facility is not a standard, off-the-shelf product that could be easily acquired."
Scaling up to 24/7 production
According to Project Director Iiro Tiilikainen, the planning phase played a crucial role in scaling up biocoal production to industrial scale.
"The biocoal production facility is not a standard, off-the-shelf product that could be easily acquired."
A key aspect of scaling the production facility was finding the best possible approach to implementation. In practice, this meant careful planning and bringing together various parts of the process. During the planning phase, several implementation options and technical solutions were compared.
The right technology was found in Austria, where the technology provider had a small pilot plant ready. However, scaling the technology to industrial size presented a completely different challenge. The pilot plant was only about one-tenth the size of the planned facility in Joensuu. While the pilot plant could occasionally produce test batches, it was not designed for continuous production. In contrast, the plan for Joensuu was to build a production facility that would operate 24/7.
Additionally, scaling up required addressing various factors, including raw material sourcing, environmental considerations and noise permits. It was also essential to determine how to ensure that the technology functions reliably on an industrial scale, as well as the most suitable form in which to deliver the final product to customers.
Technical expertise as a requirement and competitive advantage
Along with detailed planning, the project has required the ability to make quick decisions and strong technical expertise. When scaling up technology and developing an industrial-scale production facility as one of the pioneers, it is inevitable that some issues will arise, which must be addressed throughout the process.
According to Tiilikainen, the plans have been adjusted as needed, and the right solutions have been identified and implemented promptly.
“We have focused on ensuring the operational reliability through careful selection of materials and components. This helps to minimise maintenance and repair needs during operational phase while enhancing the overall reliability of the production facility.”
Sometimes, ensuring consistent performance during the operational phase has required Tiilikainen and the project team to dive into complex technical details, in addition to overseeing the big picture. This would not have been possible without Taaleri Bioindustry’s strong engineering expertise.
Taaleri maintains its competitive edge
Valuable experience and know-how have been gained during the project, which can be leveraged in the future as well.
Typically, in private equity projects, consultants are in charge of project management, while asset managers take a backseat. However, Taaleri Bioindustry has adopted a different, more proactive approach. Instead of relying on consultants, its own team has led the project. This hands-on approach has ensured that Taaleri retains expertise in-house and strengthens its competitive edge.
Taaleri can replicate this model to build more production facilities. The lessons learned in Joensuu can be leveraged to streamline and fine-tune the process, making the next projects quicker and even more efficient. For example, process measurements and production data enable more precise calculations, facilitating smoother regulatory procedures.
Tiilikainen highlights that effective collaboration and clear communication with equipment suppliers have played a vital role in the development of the Joensuu production facility. In future projects, the timing of construction and installation can be further optimised by determining more precisely how much of the equipment should be assembled before delivery to the production facility, as well as the ideal sequence for installation.
According to Tiilikainen, cooperation with Savon Voima has been a material part of the project, creating opportunities for significant synergies. Savon Voima focused on the construction of the building, enabling Taaleri Bioindustry to concentrate on the biocoal production process and equipment. Functioning infrastructure, including water, sewerage and district heating system, already existed on site. The excess heat generated in the biocoal production process can be used in Joensuu’s district heating network. Existing equipment has also been utilised, and further synergies will be achieved in operations and maintenance. In addition, a joint venture has been established to manage raw material procurement.
"We are among the first in the world to develop and build a fully operational industrial-scale biocoal production facility."
Iiro Tiilikainen, Project Director at Taaleri Bioindustry
Significant need for replacing fossil raw materials
The story of biocoal has just begun.
"The need to replace fossil materials is so immense that there’s plenty of room in the market for many more biocoal plants."
Taaleri offers a concept in which clients using biocoal do not need to make significant investments in new equipment. Instead, biocoal is a drop-in product, meaning it can almost directly replace coal in industrial processes. For example, the cement and steel industries produce a significant amount of global CO2 emissions and are difficult to decarbonise. Biocoal offers a viable solution, enabling these industries to replace coal with biocoal.
The experience gained from the Joensuu development project is invaluable and even essential for future large-scale biocoal production projects.
There is currently much positive buzz surrounding biocoal globally, with many players having ambitious visions. However, bringing these plans to life is a different matter. As a pioneer, Taaleri has managed to achieve what many are still dreaming of – taking a crucial step that is essential for the successful execution of large-scale projects.
"We are among the first in the world to develop and build a fully operational industrial-scale biocoal production facility."
- Taaleri Bioindustry has developed one of the Europe's largest biocoal production facility.
- The annual production capacity is 60,000 tonnes of torrefied biocoal.
- The ramp-up of production started in spring 2025.
- The facility is located in Joensuu, Finland.