CarbonScape to Launch €50M Biographite Pilot Plant in Kotka, Strengthening Finland’s Battery Cluster
The New Zealand-based bioeconomy company CarbonScape is starting the construction of a pilot plant for biographite production at the former Stora Enso pulp mill in Sunila, Kotka. The investment is estimated to be worth €40–50 million, and it is expected to enhance Kotka’s significance in Finland’s battery value chain. The construction of the pilot plant is expected to begin next year, with production planned to start in 2026.
CarbonScape intends to utilize sustainable side streams from the forest industry in the production of biographite, enabling the production of carbon-negative materials. The company aims to achieve a turnover of up to $2.5 billion by 2035, with nearly a 20% market share in Europe and the United States.
Stora Enso, which is also a minority owner of CarbonScape, is leasing part of the Sunila plant area to the company. Through this partnership, the region’s competitiveness will improve even further. The strong infrastructure of the Sunila area, availability of wood raw materials, good transport connections, and skilled workforce make it an excellent location for new battery material production facilities.
“Locating CarbonScape’s pilot plant at our Sunila site aligns perfectly with our shared vision of promoting sustainable battery technology and transitioning to renewable materials. Thanks to the partnership, we can explore synergies between our plants, promote innovation, and strengthen Stora Enso’s leadership in sustainable solutions,” says Juuso Konttinen, Senior Vice President of Biomaterials Growth Businesses at Stora Enso.
David Lindström, CEO of Cursor, the development company of the Kotka-Hamina region, emphasizes the significance of the investment for the region’s Power Coast battery cluster: “We are delighted that Finland and the Kotka-Hamina region are succeeding in the fierce global competition for investments, especially as this decision supports our other battery industry projects. The work we’ve done is bearing fruit, and it reinforces confidence in a bright future,” Lindström states, warmly thanking all parties involved.
Business Finland has also played a strong role in securing the pilot plant investment for Finland and Kotka.
“Finland is a highly competitive environment for the commercialization of clean technologies in global markets. CarbonScape’s investment plan is important because it innovatively produces carbon-negative materials for Europe’s battery industry, leveraging the industrial expertise of the Kotka region and Finland. This is a concrete example of how sustainable, innovative solutions and systematic collaboration create new jobs and strengthen the local economy,” says Markku Kivistö, Head of Cleantech at Business Finland.
With CarbonScape’s investment, we have taken a significant step towards a sustainable battery industry in the Kotka-Hamina region. It opens up new opportunities for local businesses and professionals and brings positive development to the region’s economy. We are eagerly following the future strengthening of the Power Coast cluster and the new opportunities it will bring. The region also has a strong industrial heritage and educational institutions capable of training new workers for the sector. A close collaboration network of education and research organizations is forming around the battery cluster, focusing on education and technological development.
Photo: Pekka Vainio