Ornskoldsvik, Sweden [RenewableEnergyWorld.com] The Swedish Energy R&D Board will provide an investment grant for industrial scale demonstration of Chemrec’s technology for the production of BioDME and Biomethanol motor fuels . The plant will be built at the Domsjö Fabriker biorefinery in Örnsköldsvik, Sweden. The investment grant of up to US $73 million is contingent on approval by the EU Directorate General for Competition according to the State aid rules.
The plant is based on Chemrec’s technology for black liquor gasification combined with technology from the petrochemical industry. Investment cost is calculated at about $440 million for a capacity of about 100,000 tons or 40 million gallons per year of 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 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.