Companies and universities together create business based on high expertise in biobased economy in the Päijät-Häme region, promoting carbon-neutral circular economy.

In Päijät-Häme, there are abundant by-products of forestry and industry that can be utilized better than currently. The goal of the City of Lahti's ecosystem agreement is to establish a central hub for material cycles in the region, which this project promotes. The project forms business clusters focusing on the utilization, processing, and final use of biomass, various fiber materials, and biomass-based waste and by-products.

The project brings together companies from different sectors and universities so that the circular economy expertise, research, education, infrastructure, and pilot environments of universities help companies develop and diversify their business. Together, it is possible to create world-class innovations and international business.

The project is a collaborative effort, with LUT responsible for the biomass cluster and LAB for the biochar cluster. The third actor in the project, Ladec, the development company of the City of Lahti, is an expert in business development.

Project Information:
Innovation and Skills in Finland 2021–2027, EU's regional and structural policy program, European Regional Development Fund (ERDF)
Project: Development of Materials Cycles Business Clusters 1.3.2023-28.2.2025
Action Line: Carbon-Neutral Finland
Specific Objective: Promoting the Transition to Circular Economy



Project period:

Project funding:
Helsinki-Uusimaa Regional Council, Co-funded by the European Union


The project aims to:

Increase industrial innovations, investments, and jobs in the SME sector.
Grow expertise capital and boost demonstrations.
Strengthen the attractiveness of the Lahti region among companies operating in the bioeconomy sector.