Billerud to conduct pilot study for production of green oil from forest residues at Skärblacka paper mill in Sweden

SOLNA, Sweden, May 9, 2011 (Press Release) - Billerud is to evaluate the technical and market prerequisites for lignocellulose-based pyrolysis products. The project goal is to manufacture green oil from forest residues such as branches, tops and stumps. The green oil can then be turned into renewable energy in customers' facilities.

The project is based on producing green oil from wood raw material in a full-scale facility at the Skärblacka paper mill. This is about a new type of commercial energy carrier. The project intends to establish the technical and market prerequisites for lignocellulose-based pyrolysis products, biofuel, as a replacement for fossil-based oil.

Billerud has applied for funds from the EU within the framework of the NER300 programme. The European Commission has decided to fund up to 42 commercial and innovative production facilities in order to increase the proportion of renewable energy sources and achieve a reduction in CO2. A decision is expected in the second half of 2012.

Billerud is holding discussions with partners who are interested in future supplies of green oil from wood raw material.