Biozin and Preem enter biofuel development venture
In Norway, advanced biofuel developer Biozin AS, a wholly owned subsidiary of Norwegian wood processing major Bergene Holm AS and Swedish oil refiner Preem AB have entered into a cooperation agreement on the realization of large-scale biofuel production in Norway through a new joint-owned company Biozin Holding AS.
According to the Norwegian Bioenergy Association (NOBIO), a first Biozin plant is being planned at Bergene Holm’s Nidarå sawmill in Åmli municipality. Using 700 000 m3 of forestry and sawmilling residues as feedstock, the plant will have the capacity to produce biochar and approximately 120 000 m3 “biozin”, a refinery-ready biocrude that Preem has an off-take in place for further refining and distribution.
Project development is initially funded by Preem AB and Bergene Holm AS with NOK 25 million (≈ EUR 2.6 million). The project’s total cost framework is expected to be approximately NOK 2.5 billion (≈ EUR) though no investment decision has been made.
The ambition is to establish more production facilities in southern Norway. Raw materials, opportunities for synergies with other industries and utilities are important criteria for localisation as well as stable long-term political framework conditions.