EC Approves Funds to Support Domsjo Biorefinery Project

The European Commission has approved financial support of SEK 500 million (EUR 54.6 million) that Sweden plans to grant to the Domsjö research and development (R&D) project. Domsjö Fabriker AB, a Swedish pulp producer, will develop a demonstration plant for the production of bio-methanol and other biofuels from pulp mill residue material. The Commission concluded that the project is compatible with the EU Framework on State aid for research, development, and innovation.

Last summer, Sweden reported that it would aid the Domsjö project, based on a support scheme pre-approved by the Commission in 2008. The project involves the development of an industrial-scale demonstration plant for the production of second generation biofuels (bio-methanol and bio-DME) from pulp mill residue material (thick black liquor). The R&D project will be carried out during a period of 10 years.

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