Swedish-based Chemrec will receive an investment grant from the government for production of the renewable motor fuels BioDME and Biomethanol.
The Swedish Energy R&D Board will provide an investment grant of up to EUR49 million (USD73 million), approved by the EU Directorate General for Competition, for demonstration in industrial scale of the Chemrec technology.
The plant, to be built at the Domsjö Fabriker biorefinery in Örnsköldsvik, is based on the Chemrec technology for black liquor gasification combined with technology from the petrochemical industry. Investment cost is calculated at about EUR300 million for a capacity of about 40 million gallons per year of the renewable motor fuels BioDME and Biomethanol.
The Chemrec technology can reduce greenhouse gas emissions by 95 per cent 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.
The Domsjö plant will have the capacity to supply well over 2000 heavy trucks with fuel. With fully implemented renewable fuels production at all pulp mills in Sweden, half of all heavy road transports could be propelled by BioDME. The technology can replace half of all fuels used for heavy road transports with BioDME and Biomethanol. At the same time total Swedish fossil carbon dioxide emissions would be reduced by 10 per cent or about 6 million tons and replace fossil fuel imports worth about EUR1 billion annually. Globally applied the technology has the potential to replace about 30 million tons of diesel oil annually.
"We continuously work with product and business development to strengthen the competitive position of our biorefinery, Domsjö Fabriker. With this planned biofuels production we are adding another value-added product to our current product portfolio of specialty cellulose, lignosulfonate and ethanol," says Ola Hildingsson, CEO of Domsjö Fabriker.
The energy raw material for the biofuels is forest harvest residues, primarily branches and tree-tops. The project will generate substantial employment during the construction phase and permanently in the local forestry and for the operation and maintenance of the plant.
The biorefinery Domsjö Fabriker produces specialty cellulose, lignosulfonate and ethanol at its facilities near central Örnsköldsvik, 550 km north of Stockholm. The biorefinery employs about 340 persons and generates about EUR150 million in revenue.
The Swedish Energy R&D Board will provide an investment grant of up to EUR49 million (USD73 million), approved by the EU Directorate General for Competition, for demonstration in industrial scale of the Chemrec technology.
The plant, to be built at the Domsjö Fabriker biorefinery in Örnsköldsvik, is based on the Chemrec technology for black liquor gasification combined with technology from the petrochemical industry. Investment cost is calculated at about EUR300 million for a capacity of about 40 million gallons per year of the renewable motor fuels BioDME and Biomethanol.
The Chemrec technology can reduce greenhouse gas emissions by 95 per cent 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.
The Domsjö plant will have the capacity to supply well over 2000 heavy trucks with fuel. With fully implemented renewable fuels production at all pulp mills in Sweden, half of all heavy road transports could be propelled by BioDME. The technology can replace half of all fuels used for heavy road transports with BioDME and Biomethanol. At the same time total Swedish fossil carbon dioxide emissions would be reduced by 10 per cent or about 6 million tons and replace fossil fuel imports worth about EUR1 billion annually. Globally applied the technology has the potential to replace about 30 million tons of diesel oil annually.
"We continuously work with product and business development to strengthen the competitive position of our biorefinery, Domsjö Fabriker. With this planned biofuels production we are adding another value-added product to our current product portfolio of specialty cellulose, lignosulfonate and ethanol," says Ola Hildingsson, CEO of Domsjö Fabriker.
The energy raw material for the biofuels is forest harvest residues, primarily branches and tree-tops. The project will generate substantial employment during the construction phase and permanently in the local forestry and for the operation and maintenance of the plant.
The biorefinery Domsjö Fabriker produces specialty cellulose, lignosulfonate and ethanol at its facilities near central Örnsköldsvik, 550 km north of Stockholm. The biorefinery employs about 340 persons and generates about EUR150 million in revenue.
