Press Release by LAB University of Applied Sciences, 8.10.2024

LAB University of Applied Sciences and LUT University are building a competence center for biomaterials in Lappeenranta. The international bioeconomy hub took a significant step forward in October with the granted funding.

The biomaterials competence center in Lappeenranta will serve both companies and research institutions upon completion. The business ecosystem developing around the competence center is expected to employ hundreds in the coming decade.

– We aim to become the leading player in Europe. Our goal is for the business ecosystem created by the competence center to achieve a turnover of 300 million euros and employ up to 300 people by 2030, envisions Mikko Ojapelto, project manager at LAB.

Biomaterials, such as wood, straw, or reed, are already being used in textile fibers, composites, and bioplastics. In the future, the goal is to replace fossil raw materials increasingly with biomaterials in demanding applications, such as the chemical, food, cosmetics, and pharmaceutical industries.

The Competence Center Accelerates Innovations to International Markets

The joint competence center of LAB and LUT is based on collaboration with the region's forest industry. LUT University conducts high-level fiber technology laboratory research, while LAB University of Applied Sciences focuses on developing products and processes in a pilot plant, commercializing innovations, and targeting international markets.

– Utilizing side streams from the forest industry and agriculture offers vast new opportunities globally. LUT has top expertise that can further develop the processing of cellulose, hemicellulose, and lignin, so that in the future, they can be used as new raw materials for entirely new purposes, says Katja Lahikainen, director of the Separation Technology Center at LUT University.

Experts from LAB and LUT believe that the competence center can also address challenges arising from global food production side streams, such as the further utilization of biomass from grain, coffee, citrus, cocoa, or olive cultivation. The competence center provides an opportunity to test and solve challenges on a larger production scale instead of a traditional laboratory environment.

In addition to the forest industry, high-tech companies from South Karelia, such as Nordic Bioproducts Group, Synbio Powerlabs, and Fiber-X, have been key partners in the project alongside the universities.

The Competence Center Brings Growth and Vitality to All of South Karelia

LAB University of Applied Sciences received approximately 2.6 million euros in funding from the JTF fund of the Regional Council of South Karelia for the competence center, the largest funding ever applied for by LAB. The City of Lappeenranta also granted 360,000 euros for the project for the years 2025 and 2026.

– The competence center is a future-oriented action that concretizes the strategic goals of South Karelia. With the granted funding, we can credibly and business-orientedly develop bioeconomy research and business, says Kirsi Vainio, director of vitality at the Regional Council of South Karelia.

– We in Lappeenranta strongly believe in the future of biomaterial processing. Our city offers an excellent operating environment for growth companies, and the side streams of the region's forest industry ensure the supply of bio-based raw materials locally. Innovative growth companies in the biomaterials sector located in the area, together with top research from LUT and LAB, create a strong foundation for a future business-driven competence center, states Ding Ma, director of vitality at the City of Lappeenranta.

– We are facing a challenge that is many times larger and more exciting than before. The overall project enables us to expand innovation activities and business collaboration and internationalize research in a new way, summarizes Kirsi Taivalantti, director of the technology unit at LAB.