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 euros. The production capacity is estimated at 100 thousand tonnes per year. Since 2018, there is already an analogous set of pellet plant operating, with equipment supplied by Hekotek.
Considering the current fight against climate change and the relevance of the environmental agenda, demand for pellets is on the rise. Pellets are an eco-friendly fuel that comes from a renewable source.
Segezha Group pellets meet the highest requirement of the European ENPlus A1 standard. Raw materials for fuel pellets include sawdust and fine chips, which are by-products of coniferous timber processing. Such pellets are produced under high pressure without the use of chemical binding agents. In terms of heat production, they are comparable to hard coal but release fewer sulphur compounds when burning. Converting boilers to run on pellets facilitates reduced GHG emissions and improves environmental conditions.
Segezha Group ships its fuel pellets to consumers in Russia and the EU. The product is used for heating both private homes and public places.