Poyry : Baltania OÜ and Pöyry sign EPCM services assignment for first industrial scale Torrefied Pellet Plant

Pöyry PLC Press release 21 November at 9:00 CET

Baltania OÜ has awarded Pöyry with an assignment for Engineering, Procurement and Construction Management (EPCM) services for the new Torrefied Pellet Plant project in Vägari, Estonia. The assignment includes project management, basic engineering, procurement and site supervision services.

This project is a step forward in energy transition from fossil fuels to bio-coal made from renewable biomass. For this purpose, Baltania has brought together the best parties to build a commercial, industrial scale torrefied pellet plant using the latest state-of-the-art technology.

'Pöyry is delighted to support Baltania with this important and challenging project in Estonia. It is one of the first industrial size torrefied pellet production plants in the world and by far the largest one, and we are proud to be their partner in this demanding project,' says Ilkka Heikkilä, Pöyry's Regional Director for Thermal Power.

'We bring together two parties: CEG and Pöyry to execute this torrefied pellet plant project in Estonia. CEG delivers superior torrefaction technology and Pöyry is the chosen partner for its expertise in engineering, procurement, construction and management of biomass energy projects,' says Mika Hassinen, CEO of Baltania OÜ.

'CEG was chosen to deliver its superior torrefaction technology and project management knowledge in torrefaction pellet plant projects. We see this as a major step forward in implementation of energy transition from fossil fuels to sustainable biomass-based fuels. We are proud to support Baltania in this important project in Estonia,' says Jeroen Koot, CEO of CEG B.V.

The construction of this new production plant is expected to be completed during Q1/2020 and when in full operation it will produce 157,000 t/a of torrefied pellets made of sustainable biomass sourced from forestry wastes and by-products of wood processing industry.

Torrefaction is a thermochemical process applied to biomass which transforms it into a homogeneous fuel (bio-coal) with remarkably superior handling, energy density, water resistance and grindability properties that make it comparable with fossil coal and a sustainable replacement of fossil coal in power generation plants and other processes. The torrefaction process is based on CEG technology which offers a number of novel features. CEG's torrefaction process converts biomass into torrefied pellets and biochar utilising its proprietary torrefaction reactor. The torrefied products are produced with no net thermal energy imported from non-renewable systems.

The value of the order is not disclosed. The order will be recognised within Pöyry's Energy Business Group order stock in H2/2018.

Further information:

Ilkka Heikkilä

Regional Director, Thermal Power, Nordics

Pöyry

Tel. [phone]

Mika Hassinen

CEO

Baltania OÜ

Tel. [phone]

About Pöyry

Pöyry is an international consulting and engineering company. We serve clients across power generation, transmission & distribution, forest industry, biorefining & chemicals, mining & metals, infrastructure and water & environment. Together, we deliver smart solutions and work with the latest digital innovations. Pöyry's net sales in 2017 were EUR 522 million. The company's shares are quoted on Nasdaq Helsinki. Approximately 5500 experts. 40 countries. 115 offices.

In 2018 Pöyry is proud to be celebrating its 60th Anniversary, together with employees, clients and partners.

Visit our website at www.poyry.com and follow us on Twitter | LinkedIn | Facebook | YouTube

About Baltania

Baltania OÜ was established in 2012 to develop a biomass project. In 2017 the Dutch investment firm Momentum Capital took over ownership. The current owners have experience in project developments, forestry, wood processing, torrefied pellets and biogas energetics, and construction and engineering.

About CEG

CEG is an energy innovation company. CEG creates and realises solutions for sustainable energy by processing biomass through torrefaction. It uses sustainable means that are cleaner and less harmful to the environment which replaces unsustainable and expensive resources. CEG's unique torrefaction reactor converts biomass into a range of products such as biochar, biochar dust, and biocoal pellets. CEG's biocoal can then be fired into conventional power plants boilers, which is a sustainable alternative to burning conventional fossil coal. The additional benefit of the CEG torrefaction process is the output of syngas that can be used in its syngas generators and directly supply green power. CEG is a joint venture with leading financial partners: Momentum Capital based in the Netherlands (95%) and Transformative Energy and Materials Capital (TEM Capital) based in Boston (5%). For more information: www.cegeneration.com