China is expanding cooperation with Finland in renewable energy, as Beijing works toward its goal of ensuring green development.

Following an outline agreement last November that set out intentions, China CAMC Engineering Company, an arm of China’s State-owned Sinomach, signed a further agreement with Finland’s Boreal Bioref in February that will facilitate the investment of 800 million euros ($854 million) in a new pulp mill.The final deal is likely to be signed during President Xi Jinping’s visit. The plant will produce electricity, heat, wood, and pine oil from trees.

HeikkiNivala, CEO of Boreal Bioref, said CAMCE’s highly relevant experience in constructing pulp mills and its strategic aim to secure pulp supplies for China will benefit the Finnish company.

"In addition to being our engineering, procurement and construction service provider, CAMCE will act as a leading investor in the project and intends to take an active role in facilitating pulp sales into China," Nivala said.

China has the largest paper, cardboard and viscose industries in the world. It imports 20 million metric tons of pulp to supply these industries.

Nivala said Finland exports 3 million tons of pulp, of which about 1 million tons goes to China, making China Finland’s largest trading partner in pulp.

China’s economy is in historic transition and green development is one of the five major development concepts in China’s new five-year plan. Experts believe China will strengthen collaboration with Finland in the areas of energy and the environment to make the transition smoother.

EsaVakkilainen, a professor of energy technology at Lappeenranta University of Technology, said Oilon, a Finnish company that makes industrial gas and oil burners, is a prime example of how Finnish know-how benefits China. Huge numbers of the company’s low-pollution, new-technology burners have been recently installed in China.

"Finland is one of the leading countries in clean tech," said Vakkilainen, who believes the countries can also work together on waste treatment, biogas generation, water purification, and air pollution abatement.

CAMCE is not alone in making inroads in the Finnish energy sector. In February 2016, one of the leading renewable energy companies in China, Sunshine Kaidi New Energy Group, announced its plan to invest up to one billion euros in the construction of a bio-refinery in Kemi, Northern Finland.

The plan was firmed up when Carl Haglund, the CEO of the company’s Finnish subsidiary, confirmed in December that the Chinese firm had given the tentative green light to the facility in northern Finland.

The refinery is projected to produce up to 200,000 tons of advanced biofuel a year, with around 4,000 jobs created during the building process and a permanent staff of 150.

Both projects would benefit the bio-economy concept that the Finnish government wants to bring forward, Vakkilainen said.

"The major benefit to China is the internationalization of the respective Chinese companies," he said. "In addition to reaping the profits from the business, they get the possibility to showcase their technological knowhow in the EU."