The two companies failed to secure a funding for the project from the European Commission under its NER 300 program, which is cited as the primary reason for the decision to shelve the project.
Neste Oil president & CEO Matti Lievonen and Stora Enso CEO, Jouko Karvinen said in a joint statement that the partners had given a careful and realistic costing for the project.
"It would have represented a very significant investment and we concluded that we would not have gone ahead in any case, even if we had won public funding," said Lievonen and Karvinen.
Trials carried out at a pilot plant in Varkaus between 2009 and 2011 had been successful and the companies were hopeful of a positive outcome on their plea for EU funding.
"Technically speaking, our work was a great success and we are very satisfied with what we achieved."
"Cooperation between the two companies has also been very smooth and will continue in the future in the area of other bio-based products," concluded Lievonen and Karvinen.
