Nordic Paper and RenFuel to Collaborate in Test Facility to Produce Biofuel Based on Lignin

RenFuel and Nordic Paper have signed an agreement to build a production test facility in Bäckhammar in the region of Värmland, Sweden in order to test-manufacture an advanced biofuel based on lignin. The project has been granted 71 million SEK by the Swedish Energy Agency.

The Swedish bioenergy research firm RenFuel has developed and patented a method to refine the lignin from black liquor, a renewable byproduct from the production of paper pulp, into lignin oil. The oil, called Lignol, can replace fossil oil and be used as raw material in the production of renewable gasoline and diesel. Using the black liquor also leads to an increase in production capacity and profit in the paper pulp industry.

“Our product Lignol is the key to reaching the goal of a fossil free vehicle fleet in Sweden by 2030. We are very pleased to finally being able to put the product into large scale testing, as a result of the cooperation with Nordic Paper and the financial support from the Swedish Energy Agency,” Sven Löchen, CEO of RenFuel said.

The production test facility will be built inside the Nordic Paper pulp factory in Bäckhammar, and will be ready for production by the beginning of 2017. If the production tests are successful, the next step will be large scale production of Lignol to meet the demands of the rapidly growing market for biofuel.

According to Nordic Paper, Lignol has the potential to quickly lessen the need for fossil oil, and it’s a realistic way of reaching the goal of a fossil free vehicle fleet by 2030.

“The paper and paper pulp industry is an important link in the bio economy. We can, through this cooperation, contribute tangibly to a fossil free future. That is incredibly gratifying,” explained Per Bjurbom, CEO of Nordic Paper.

Another important link in the chain is access to refineries that have the capacity to produce diesel and gasoline from Lignol. Sweden’s largest fuel company, Preem, has since 2010 gradually adjusted its production toward renewable fuels through exchanging crude oil with for example tall oil.

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