Swedish Energy Agency provides grant for world's first renewable DME plant
STOCKHOLM, April 2, 2008 (Press Release) - The Swedish Energy Agency has granted Chemrec SEK 100 million support to build and operate a DME synthesis development plant at its black liquor gasification development plant in Piteå, Sweden. The support from the Swedish Energy Agency supplements the support sought within EU's Seventh Framework Program for R&D (FP7) in which contract negotiations are in the final phase. Chemrec and its partners also invest major funds in the project.
Chemrec's CEO Jonas Rudberg says: We are very excited to participate in this project, which will develop and demonstrate the complete production chain from biomass to renewable biofuel for field tests in Volvo trucks. BioDME is an engine fuel with outstanding environmental performance and economy. Chemrec's technology provides a tremendous opportunity for the global pulp and paper industry to improve its profitability and contribute to greenhouse gas reductions. Full implementation of the Chemrec technology in all Swedish pulp mills would yield about 6,000,000 tons of CO2 reduction per year or roughly 10% of current Swedish CO2 emissions while supplying 25% of current Swedish automotive fuel consumption.
Raw syngas produced in Chemrec's existing gasifier will be used to produce 4-5 tons of renewable DME (dimethyl ether) per day starting in the fourth quarter of 2009, utilizing 1% of the black liquor from its host mill, Smurfit Kappa Kraftliner.
Chemrec's partners in the BioDME project contribute with world leading competence within their areas of expertise. The Danish catalyst and technology company Haldor Topsoe will provide new effective DME synthesis technology. ETC (Energy Technology Center in Pitea, Sweden) will contribute expertise in the areas of synthesis gas and its synthesis to products. Preem, the largest Swedish oil company, will distribute DME to 4 distribution points in Sweden and plans to utilize part of the DME production for blending in LPG. Total, the world's fourth largest publicly-traded integrated oil and gas company, has considerable know how in DME and will lead the development of a fuel grade DME specification. Delphi will in cooperation with Volvo develop the DME injection system for the diesel engines. AB Volvo, coordinator for the whole project, will develop 14 complete heavy vehicles for test of BioDME produced in Piteå in field trials.
