RusForest announced first shipment of pellets from Arkhangelsk LDK-3 mill

RusForest recently shipped more than 6,000 tonnes of wood pellets produced at the company’s LDK-3 mill in Arkhangelsk. The pellets are expected to be used as fuel for a European coal-fired power plant. The pellet mill passed the production testing phase successfully and is now running at full capacity of 100,000 tonnes per year.

At first, the volumes will be shipped to the European industrial market on a monthly basis. Due to the high-quality wood chips and sawdust used for pellet production, the company expects to be able to sell pellets at a higher value in the future to European municipal and home heating markets.

“The start of pellet sales is a turning point for our Arkhangelsk operations and gives us an opportunity to achieve positive EBITDA in the local business unit. There is strong demand for pellets in Europe, and we look forward to providing an alternative bioenergy source for European consumers,” Group CEO Matti Lehtipuu commented.

Total investments into the pellet production were €12 million, 70% out of which was local bank funding.