Chemrec receives SEK 500 M grant for biofuel production

The Swedish Energy Agency has awarded a grant worth SEK 500 M to Chemrec’s facility in Örnsköldsvik, Sweden. The grant is intended for the production of biofuel from black liquor, a high-energy, viscous by-product from the pulp industry.

The Volvo Group, one of Chemrec’s joint owners through Volvo Technology Transfer, recently presented a joint project being implemented by a number of players, including the EU, the Swedish Energy Agency, various fuel companies and the transport industry. The objective of the project is to investigate the possibility of initiating a large-scale investment in DME fuel produced from biomass, known as Bio-DME. Volvo Trucks is contributing to the project by providing 14 Volvo FH trucks that will be test driven by selected customers at four locations in various parts of Sweden between 2010 and 2012.

The grant will be awarded to Chemrec on the condition that the outcome of the European Commission’s government grant review is positive.

Read more about the Volvo Group’s investment in Bio-DME.