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R 251244Z OCT 07
FM AMEMBASSY HELSINKI
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RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS SECTION 01 OF 02 HELSINKI 000797 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS USITC/L.M. SCHLITT 
 
E.O. 12958: N/A 
TAGS: TRGY ENRG SENV EAGR ECON FI
SUBJECT: THE BIOFUELS PICTURE IN FINLAND 
 
REF: STATE 133131 
 
¶1. Believing that biofuels can decrease greenhouse gas 
emissions while also further diversifying its overall energy 
mix, the Government of Finland is aggressively funding 
programs that will create biofuels from woody biomass, fuel 
peat, and recovered fuels. Finland has also begun increasing 
the use of biofuels for transportation. Renewable energy 
already comprises an impressive 25 percent of Finland,s 
primary energy consumption (85 percent from bioenergy - 
mostly wood); this figure is expected to rise to 35 percent 
during the next decade.  Finland has mandated that biofuels 
make up 2 percent of all transportation fuels by 2008, 
gradually increasing to 5.75 percent by 2010.  This mandate 
has created instant market demand, further fueling overall 
research and development efforts by in both the Finnish 
public and private sectors, including many companies in the 
paper and pulp industry which seek to integrate energy 
production from biomass into their overall businesses. 
 
The Government Offers Support( 
============================== 
 
¶2. The Finnish Government, its public funding unit Tekes 
(Finnish Funding Agency for Technology and Innovation) and 
its grant recipients -- science and research organizations 
such as VTT Technical Research Center and State-sponsored 
universities are all players in Finland,s growing biofuels 
sector.  Tekes provides grants that support innovative 
research and development projects conducted by companies, 
research institutes, and universities.  For example, Tekes is 
currently supporting Biorefine, a 5-year, 140 million euro 
program for research and development of biofuel technologies. 
 Grant recipients (i.e. VTT, University of Helsinki, private 
companies) generally must publish their results for use by 
the general public; this is a measure to strengthen Finland's 
knowledge-based economy.  In addition to Tekes funding, the 
Finnish Ministry of Trade and Industry has a separate annual 
budget of 9 million euros for tangible biofuel demonstration 
projects.  According to Minister of Trade and Industry Mauri 
Pekkarinen (who holds the energy portfolio), this fund is a 
strong sign to the world that significant efforts are being 
put toward biofuel research and development in Finland. 
 
(But Looks to the Private Sector for Innovation 
============================================= == 
 
¶3. Finnish companies are also actively involved in biofuel 
research and development, bringing a competitive element to 
Finland's biofuel landscape and creating an atmosphere ripe 
for networking between companies.  Paper and pulp industrial 
giant Stora Enso has partnered with Neste, Finland's 
semi-State-owned oil company, to produce second generation 
biofuels at a new facility in southern Finland.  UPM-Kymmene, 
another leading forest products company, is working with the 
Gas Technologies Institute (GTI) in Chicago to integrate 
biofuel production into the overall pulp and paper lifecycle. 
 As wood fuels already contribute the majority of bioenergy 
production in Finland, this sort of integration between 
energy companies and the pulp and paper industry is quite 
natural.  Tekes also offers smaller financial grants to 
private companies on the condition that the companies 
disclose limited general information on their findings 
without having to disclose proprietary secrets. 
 
¶4. (U) Listed below are various Finnish publications (in 
English) on biofuels: 
 
Publications: 
 
EUBIONET. Solid and liquid biofuels markets in Finland. 2006. 
 
Hermans, Raine, Kulvik, Matti, Yla-Anttila, Pekka. FINBIO 
International megatrends and growth prospects of the Finnish 
 
HELSINKI 00000797  002 OF 002 
 
 
biotechnology industry. 2005. 
 
Leppalahti, Jukka. BioRefinery State of Art Finland. 2007. 
 
Luxmore, Crystal. Leaders of the pack; Second-generation 
biofuel pioneers. 2007. 
 
Makinen, T. IEA Bioenergy Task 42 Country Report Finland. 
¶2007. 
 
Makinen, T, Sipila, K, Nylynd N-O. Possibilities to produce 
and use biofuels in transportation in Finland. 2005. 
 
Neste Oil Corporation. Neste Oil and Stora Enso to join 
forces in biofuel development. 2007. 
 
Tekes. Growing Power, Renewable solutions by bioenergy 
technology from Finland. 2007. 
 
UPM. UPM and Andritz/Carbona team up for biomass based 
synthetic gas production. 2007. 
 
Websites: 
 
Finnish Bioindustries, http://www.finbio.net/en/ 
 
Ministry of Trade and Industry - Biotechnology, 
http://www.ktm.fi/?l=en&s=57 
 
Neste Oil, http://www.nesteoil.com/ 
 
TEKES, http://www.tekes.fi/eng/ 
 
Turku Center for Biotechnology, http://www.btk.fi/ 
 
University of Helsinki - Institute of Biotechnology, 
http://www.biocenter.helsinki.fi/bi/ 
 
UPM, http://www.upm-kymmene.com/ 
 
VTT, http://www.vtt.fi/?lang=en 
 
The Embassy is happy to provide copies of any of these 
materials, or additional materials, upon request. 
 
Comment 
-------- 
 
¶5. Finland is emerging as a leader in the development of 
innovative biofuel technologies and it serves as an effective 
laboratory for next generation biofuel production, 
particularly from wood sources.  Embassy Helsinki warmly 
welcomes USITC officials to visit and learn more about 
current and developing biofuel technologies in Finland. 
 
¶6. (U) As requested, the primary point of contact for biofuel 
issues at US Embassy Helsinki is: Glenn Lewis: (358)(9) 
6162-5481 / lewisgk@state.gov 
WARE