Cindrigo is developing an integrated operation that combines upstream biomass production, including wood chip and wood pellet activities, with downstream heat and power generation.

Key info

Cindrigo, via its majority-owned operating company Kaipolan Energia Oy (“Kaipolan”), holds a long-term lease on a 110 MW biomass combined heat and power plant and associated biomass handling facilities. The plant has a 25MW electricity and 85MW steam production capacity and the region offers an abundant supply of sustainably sourced biomass to supply heat/steam to industrial customers in close proximity utilising existing piping. During winter, heat will also be supplied to the neighbouring village of Kaipola. Electricity will be distributed to the national power grid through Nord Pool, a leading power trading company across Europe, and can be delivered to local industrial customers as required.

The primary customer of the plant is Fuelwood Finland Oy (“Fuelwood”), a sustainable wood pellet business located on the same industrial unit. Fuelwood is being developed as part of a joint development agreement, with Cindrigo holding an initial 20% interest and the right to increase its ownership to a majority position over time. Cindrigo also has a Management Services Agreement to manage the installation, establishment and at least the first year of operation at Fuelwood, giving the company a central role in the development and operation of the business.

Fuelwood is targeting an initial production capacity of approximately 80,000 tonnes of wood pellets per annum, and a long-term target of approximately 400,000 tonnes per annum, with commissioning expected by the end of 2026. At current (May 2026) market prices of approximately €240 per tonne, this could represent a potential annual revenue of up to approximately €100 million at full capacity. This means Fuelwood has the potential to become one of Europe’s largest sustainable wood pellet production facilities.

Cindrigo’s integrated biomass model has been developed to deliver multiple revenue streams while achieving operational, cost and commercial synergies across pellet production, industrial heat, steam and power sales, and management services. The phased ramp-up model allows for controlled execution, with progressive increases in production and energy delivery expected during 2026 and beyond at a time of rising market demand. In the longer term, there is opportunity to take advantage of developing markets in black pellets, an advanced, steam-treated biomass fuel designed to replace coal, and Cindrigo is well positioned to drive further innovations in biomass-based sustainable fuels.

Strong Market Demand

The Finnish biomass market is undergoing a period of significant structural change and increased demand. Changes in industrial energy consumption patterns, growth in renewable electricity generation and the conversion of coal-fired facilities to sustainable fuels are expected to release significant volumes of energy wood into the market, improving feedstock availability and cost profiles.

Cindrigo’s management expects these changes to release up to 8m tonnes of energy wood per year. With this level of available raw material, Finland could support the development of a wood pellet industry of around 2-4m tonnes per annum – similar in size to Nordic and Baltic peers like Sweden.

Alongside this, European demand for sustainably sourced wood pellets is increasing. The continuing transition toward more sustainable energy sources, backed by EU renewable energy policies, is driving demand for wood pellets as a replacement for coal and “greening” energy production. Domestically in Finland, demand from the conversion of Helsinki’s Salmisaari A power plant in April 2025 doubled domestic pellet demand and already exceeds Finland’s existing wood pellet production.

Cindrigo is well-positioned to leverage growth and support industry development through its integrated operations.