High-quality, renewable and reliable wood pellets are ideal for fueling large power plants and for heat production in properties and homes of all sizes. We sell Neova’s Finnish pellets under the Vapo brand.
Wood pellets are environmentally friendly and can replace the use of fossil fuels such as oil, natural gas and coal. We make pellets from wood processing by-products, sawdust and cutter chipping. We use Finnish raw material.
In Finland, Neova has pellet plants in Haukineva, Ilomantsi, Kärsämäki, Turenki, Ylistaro and Vilppula. The total capacity of our production facilities in Finland is approximately 300,000 tonnes per year. The plants produce wood pellets for energy and bedding, and peat pellets as a raw material for activated carbon.
Steps in Neova’s pellet business
Neova (formerly Vapo) started production of wood pellets in 1999 at the Ilomantsi production plant. In 2002, the Finnish state sold one third of Vapo Oy’s shares to Metsäliitto Cooperative, which increased by about half in 2005. At the same time, Vapo acquired Biowatti Oy’s pellet business. At the same time, the company acquired Neova AB’s pellet plants in Sweden, pellet plants in Poland and a pellet plant and warehouse in Denmark. In the 2000s, Neova built four pellet plants in Finland. At its beginning, the company had more than 10 pellet plants in the early 2010s, with a combined production capacity of more than 1,500,000 tons of pellets.
At the same time, European pellet production came under very high price pressure as very large quantities of pellets began to be imported from North America. Neova’s pellet business was also heavily restructured. The company had six plants left in Finland and the company’s Swedish pellet business was merged with Lantmännen Agro’s plants into Scandbio AB. Neova owned 50 percent of Scandbio until February 2022 when Neova sold its stake to Lantmännen.