Segezha Group expands biofuel production in Siberia

Lesosibirsk Sawmills and Woodworking Plant (LDK No.1), part of Segezha Group, has signed a contract with AS Hekotek, Estonia, for supplying a set of equipment for its pellet production facility. The launch of the facility is planned for Q2 2023. Investments into the project will reach €10.1 million. The production capacity is estimated at 100,000 tonnes per year.

The facility will be located on the plant’s premises and will consist of three production lines. The sawdust and process chips (up to 270,000 m³ per year) will be used as raw materials. A mixture of bark and chips is to be used as fuel for the heating units. After the new production lines are launched, LDK No.1’s total fuel pellet capacity will hit 210,500 tonnes.

This pellet production facility will be Segezha’s first such site in Siberia. The other two sites currently active in Krasnoyarsk Krai are Ksilotek-Sibir LLC (110,500 tonnes) and Novoyeniseiskiy Wood Chemical Complex (60,000 tonnes).

Taking all these investment projects into account, the total pellet production capacity of Segezha Group will soar to 465,500 tonnes in 2023, growing almost threefold.