Chemrec seals bioenergy investment
The Swedish Energy R&D Board has invested in industrial scale demonstration of the Chemrec technology for production of the renewable motor fuels BioDME and biomethanol.
The plant will be built in Örnsköldsvik. The SEK 500 million (€49 million) grant is contingent on approval by the EU Directorate General for Competition according to the State aid rules.
The plant is based on the Chemrec technology for black liquor gasification combined with technology from the petrochemical industry.
The investment cost is calculated at about SEK 3 billion for a capacity of about 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 positive 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 technology has the potential to reduce greenhouse gas emissions by 95% compared to petrol and diesel. The technology can replace half of all fuels used for heavy road transports in Sweden with BioDME and biomethanol.
Swedish fossil carbon dioxide emissions would be reduced by 10% or about 6 million tonnes.
Globally applied the technology has the potential to replace about 30 million tonnes of diesel oil annually.
The plant will be built in Örnsköldsvik. The SEK 500 million (€49 million) grant is contingent on approval by the EU Directorate General for Competition according to the State aid rules.
The plant is based on the Chemrec technology for black liquor gasification combined with technology from the petrochemical industry.
The investment cost is calculated at about SEK 3 billion for a capacity of about 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 positive 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 technology has the potential to reduce greenhouse gas emissions by 95% compared to petrol and diesel. The technology can replace half of all fuels used for heavy road transports in Sweden with BioDME and biomethanol.
Swedish fossil carbon dioxide emissions would be reduced by 10% or about 6 million tonnes.
Globally applied the technology has the potential to replace about 30 million tonnes of diesel oil annually.
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