The Latvian subsidiary of Estonian company Fibenol, Fibenol Latvia Ltd, has announced its consideration of a significant investment in the northern Latvian city of Valmiera. The company is set to begin feasibility and environmental impact studies on a 26-hectare plot of land within the Valmiera Industrial Park to assess its suitability for the construction of a potential biorefinery.
Following a public auction, a building right agreement was signed on August 27th between Fibenol Latvia Ltd and the Valmiera Municipality Government. This agreement grants the company the authority to initiate all necessary preparatory work for the proposed large-scale construction project.
Valmiera Industrial Park, spanning 102 hectares, is being developed by the Valmiera region municipality in multiple phases. According to Fibenol, a successful feasibility study could see production commence by 2030. Although the press release did not specify the potential investment amount, the LETA news agency reported that it could be as much as 700 million euros.
Fibenol already operates a successful pilot plant in Imavere, Estonia, which serves as a model for the commercial-scale biorefinery planned in Latvia. The facility aims to convert low-quality wood into functional biomaterials.
“Valmiera is an ideal location for Fibenol’s first commercial-scale plant,” said Merili Palu, a Board Member at Fibenol Latvia. “Initial assessments indicate that the site meets all our key requirements, including sufficient space, potential utility support for an industrial-scale project, and strong logistical connections, including a railway link. The site’s industrial designation and the emerging industrial park offer valuable synergies with other companies.”
Jānis Baiks, Chairman of the Valmiera Municipality, expressed his enthusiasm for the project, stating, “The bio economy sector has been identified as a priority in the Valmiera Industrial Park. We support preserving natural capital and using it efficiently and sustainably.”
The planned biorefinery in Latvia has been granted national priority investment project status and will benefit from fast-track ‘Green Corridor’ services. The project has received strong support from the Latvian government, as evidenced by the Memorandum of Understanding signed between Fibenol and various Latvian ministries and the Investment and Development Agency of Latvia (LIAA).
Fibenol Latvia Ltd is a subsidiary of Fibenol OÜ, established to expand the group’s activities in Latvia.
