Biotech Firm Cancels Use of EU Just Transition Fund Money
Biotech startup ÄIO had initially planned to establish a showcase plant in Jõhvi to produce environmentally friendly oils and fats using wood and agricultural residues. However, the company has announced a change in plans concerning the use of the EU Just Transition Fund money.
According to Mariane Barrier, the head of the commercial department at OÜ ÄIO Tech, the construction of the plant is taking longer and requires significantly more financial input than the support offered by the fund. This revelation has caused the company to reassess its strategy and cancel the initially planned use of the fund for this project.
This announcement comes shortly after the acknowledgment of another failed project—a glued laminated timber products factory. This factory was also intended for Ida-Viru County and had been allocated €13 million in support. Unfortunately, this project will not be realized in the region, adding to the disappointment of the local community.
Monica Hankov, the head of the support department at the Enterprise and Innovation Foundation (EIS), reported that there have been withdrawals totaling €17.9 million across four business measures of the Just Transition Fund. A significant 90 percent of this amount is attributed to the two aforementioned projects. The funds that have been withdrawn will now be redirected to other projects that are on the waiting list.
While Hankov remains optimistic about nearly all of the remaining funded projects progressing as planned, the publication sought more detailed local insights about the ongoing progress but was unable to find a clear overview. This has raised some concerns about the transparency and visibility of the progress of these initiatives within the community.
The Just Transition Fund (JTF) was created as part of the 2021-2027 EU programming period to assist communities in tackling the challenges of transitioning to a zero-carbon economy. Given its history with oil shale, Ida-Viru County is a significant beneficiary of these funds in Estonia. However, with recent withdrawals and project cancellations, there is a growing need to ensure the remaining funds are used effectively and beneficially for the region’s transition efforts.
As the situation evolves, attentiveness to fund allocation and project management will be crucial in ensuring that the intended benefits of the JTF are fully realized in supporting the local communities and industries in their transition to sustainable practices.
