Xynergo needs an estimated 150 million Norwegian Kroner in new capital over the next three years, and another 150 million to the final investment decision for full-scale production facilities. The final investment decision could be made 2014 at the earliest.Earlier this year, Norske Skog, which owns Xynergo together with several Norwegian forest owners, raised new capital to secure operations of the company while Norske Skog and Xynergo tried to find new owners for the biofuel initiative. Norske Skog made it clear earlier this year that the Group needs to give priority to debt and cost reduction, and would not be able to invest additional capital in Xynergo.Norske Skog and the other owners - Viken Skog, Allskog, Mjøsen Skog and Statskog - agree that there is no basis for continued operations of Xynergo."Xynergo is in need of substantial risk capital. Despite a government subsidy program earmarked for second-generation biofuels, which was adopted this fall, it has not been possible to find investors willing to contribute with the necessary risk capital at this point," said Gaute H Andreassen, chairman of Xynergo's board of directors.Xynergo was established in 2008, with the objective of establishing production of renewable biodiesel and bio-jetfuel based on low quality woody biomass.