Opening Russia for feedstock supply

July 27,
2010 – MHG Systems and its associate Feedstock Optimum Ltd. are developing an
economically viable and transparent forest fuel production concept in Russia.
The concept will be piloted in the forest concessions in the Republic of
Karelia and the Leningrad Oblast.

Jarmo
Ylinen, Feedstock Optimum’s project manager, says that proper transport
technologies are not available by truck or rail from Russia because Finnish
transportation stock cannot operate there efficiently, for example, due to
different road legislation and poor road condition. Ylinen says that the
project’s ultimate aim is to establish full-scale availability of wood energy,
significantly increasing the current supply to specific power plants in southeastern
Finland and Karelia, as well as supplying new power and pellet plants.

For MHG
Systems, the project is the opening of Russia, says managing director Seppo
Huurinainen. He says that the MHG bioenergy enterprise resource planning
service will be customized for Ojat Group and its subsidiary
businesses.

The project is funded by the Finnish Foreign Ministry of the ENPI CBC Programme.