Chinese bio-energy company Sunshine Kaidi New Energy Group is set to construct a €1bn ($1.13bn) biofuel refinery in Kemi, Finland.
The refinery will produce biodiesel using wood as the main feedstock, and will be the first of its type across the world.
The facility will have an annual production capacity of 200,000 tonnes, which includes 75% biodiesel and 25% biogasoline.
Kaidi will make the final investment decision on the project by the end of the year, with the facility expected to be operational from 2019.
Upon operational, the facility is projected to create 150 full-time jobs.
Sunshine Kaidi New Energy Group chairman and CEO Chen Yilong said: “We find Finland the most interesting country to invest in for biofuels production in the Northern hemisphere.
“Finland has vast biomass resources, plenty of potential partner companies and an extremely progressive biofuels policy.”