Kemira is strategically enhancing its ferric chloride production capacity in Tarragona, Spain, to cater to the burgeoning biogas market in Europe, specifically through the introduction of Biogas Digestion Product (BDP) offerings. This investment underscores Kemira's commitment to meeting the escalating demand for biogas applications across the continent. Ferric chloride, renowned as a pivotal coagulant in wastewater treatment for phosphorus reduction, further amplifies the significance of this initiative.

The expansion initiative aligns with Europe's robust biogas sector growth trajectory, where Kemira's iron chloride-based BDP products are poised to play a pivotal role. As the region advances towards more sustainable practices, transitioning from natural gas to biogas and biomethane derived from organic waste and agricultural by-products becomes increasingly imperative. The EU's ambitious target to produce 35 billion cubic meters of biomethane by 2030 underscores this transition's strategic importance.

Tuija Pohjolainen-Hiltunen, President of the Industry & Water segment, underscored the strategic alignment of their recent investment with their growth strategy in water and sustainable solutions. She emphasized that this investment empowers them to effectively assist customers in their sustainability endeavors, particularly through biogas applications and phosphorus removal technologies. Pohjolainen-Hiltunen highlighted the uniqueness of their patented and customized biogas products, noting their potential to substantially increase biogas production yields. This initiative reflects their commitment to innovation and environmental stewardship, aiming to deliver enhanced solutions that support both business growth and sustainability goals.

Moreover, phosphorus, identified as a critical raw material by the EU, highlights the urgency of efficient phosphorus removal technologies in wastewater treatment. The recovery of phosphorus as a nutrient from wastewater not only enhances environmental stewardship but also supports agricultural sustainability through its reuse as fertilizer. Kemira's investment in expanding ferric chloride capacity is thus poised to catalyze sustainable solutions that address both market demands and regulatory imperatives across Europe.

The biogas sector in Europe is experiencing rapid growth, driving demand for specialized products like Kemira's iron chloride-based Biogas Digestion Products (BDP). As Europe pursues more circular solutions, transitioning from natural gas to biogas and biomethane derived from organic waste and agricultural by-products is a priority aligned with the EU's ambitious goal to produce 35 billion cubic meters of biomethane by 2030. Phosphorus, a critical raw material according to EU standards, underscores the importance of efficient phosphorus removal technologies in wastewater treatment, facilitating its recovery for agricultural use as fertilizer.

Kemira supports biogas producers with customized products that enhance nutrient balance in the biogas process while eliminating harmful substances. This offering extends to services that optimize biogas production efficiency and operational cost-effectiveness without additional capital investment. Biogas produced is utilized for energy generation, vehicle fuel, and as a substitute for natural gas.

Expanding ferric chloride capacity will further bolster Kemira's capability to meet the escalating demand for phosphorus removal from wastewater, mitigating eutrophication in natural water bodies.