LignoBoost will enable the mill to replace the fossil fuel in the lime kiln with lignin, reducing oil dependence and carbon emissions. The EU Commission estimates that the investment would also generate important external benefits, contributing in particular to knowledge spill-overs and environmental protection.“The fact that the financial support from the Swedish Energy Agency has been approved by the EU is a good driving force for the LignoBoost process to become a reality," says Per Tomani at Stockholm-based research company Innventia.The LignoBoost process is based on a research collaboration between Innventia and Chalmers technical university in Gothenburg, who developed a process for extracting high quality lignin from sulphate pulp mills. Research work on the process and the use of lignin as fuel has been run for years by Innventia under predominantly the Swedish Energy Agency, Södra Cell, Stora Enso, Metso, Nordic Paper and energy company Fortum.In July 2010, the Swedish Energy Agency granted support to a demonstration plant at Södra Cell pulp mill in Mörrum. The European Commission has now ruled that the project complies with EU guidelines on state aid for research, development and innovation.Joaquín Almunia, Vice President of the Commission, in charge of competition policy, declared: “The project will pave the way to transform a pulp mill into a real bio-refinery without unduly distorting competition. Fossil fuel will be replaced by a novel source of renewable energy, contributing to Europe's 2020 objectives concerning R&D, climate change and energy.”