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EU approves state support to Domsjö biofuels plant

Jan 27 2011  The European Union has approved the 500 million Kronor R&D grant from the Swedish Energy Agency to the industrial scale demonstration plant for black liqour gasification at Domsjö Fabriker, Örnsköldsvik, north Sweden.

The Domsjö plant will produce renewable and environmentally compatible biofuels biomethanol and bioDME, using the well known Chemrec technology for black liqour gasification. The biorefinery Domsjö Fabriker and Chemrec AB were awarded the grant from the Swedish energy Agency in September 2009. The project investment cost is estimated at approximately three billion Kronor. The dual product plant will have a production capacity of 140,000 tons of biomethanol per year or 100,000 tons of bioDME.Ola Hildingsson, CEO of Domsjö, expressed his pleasure that the EU-Commission has recognized that the project cancontribute to meeting EU's objectives concerning R&D, climate, energy security and employment.The new biofuels plant will create about 100 new jobs at the Domsjö bioreniery. additional jobs are expected in engineering and construction of the plant as well as during operation in feedstock supply and product distribution.

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