Investment Grant for Biofuels Project

September 28, 2009 by timbercommunity

The Swedish Energy R&D Board (Energiutvecklingsnämnden) will grant 812 million SEK in aid to three demonstration plants. The aid is given on approval by the EU Directorate General for Competition according to the State aid rules. The three projects to be handed to the Swedish Ministry of Industry for city aid notification to the commission are:
 
Chemrec AB
The project concerns the production of the renewable motor fuels BioDME and Biomethanol from black liquor in an establishment in Domsjö Örnsköldsvik. Awarded investment grant: up to 500 million SEK.

The plant is based on the Chemrec technology for black liquor gasification combined with technology from the petrochemical industry. Investment cost is calculated at about SEK 3 billion (€300 million, $440 million) for a capacity of about 100 000 tons or 40 million gallons per year of the renewable motor fuels BioDME and Biomethanol.

During the pre-feasibility study phase liquor from Domsjö Fabriker has been gasified in the Chemrec development plant in Piteå with very good results. Extensive front-end engineering and design work will now be done to provide a solid foundation for final decision on project procurement planned for the fall of 2010.

The Chemrec technology has the potential to reduce greenhouse gas emissions by 95% compared to gasoline and diesel, replace imported fossil fuels with renewable and to create improved profitability and employment in the forest-based industry, says Chemrecs COO Jonas Rudberg.

 
Göteborg Energi AB
The project is to build and operate a plant for converting low-quality wood raw material into high quality fuel - biomethane. Awarded aid: up to 222 million SEK. • Södra Cell AB. The project involves a full-scale demonstration of biofuel LignoBoost-IPM at the factory in Morrum. Awarded aid: up to 90 million SEK.

Södra Cell
The project involves a full-scale demonstration of biofuel LignoBoost-IPM at the factory in Morrum. A
warded aid: up to 90 million SEK.

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