Biozin biorefinery project awarded NOK 30 million from Innovation Norway
Norwegian advanced biofuel developers Biozin Holding AS has received NOK 30 million (≈ EUR 2.97 million) from Innovation Norway for the preliminary design of the planned "biozin" biorefinery in Åmli in Aust-Agder.
"The support and collaboration with Innovation Norway is crucial for the company's opportunities to conduct necessary studies and analyzes in the phase the project is entering," says Thomas Skadal, CEO of Biozin Holding.
Biozin Holding AS (BZH) is a Norwegian company owned by Biozin AS and Swedish oil refiner Preem AB and was established to produce renewable fuels from Norwegian sawmill and forestry residues. Biozin AS is a wholly-owned subsidiary of Bergene Holm AS, the second-largest sawmilling and wood processing group in Norway.
The pre-project will prepare a full-scale production facility for advanced bio-oil, called “biozin”.
This investment marks a milestone in a large-scale commitment to renewable fuel based on Norwegian forest raw materials. This is a national contribution in the green shift and shows that Norway is looking for sustainable solutions that the world is demanding, said Inger Solberg, Division Director for Sustainability at Innovation Norway.
1 000 tonnes of biomass per day
The production plant at Åmli will convert raw material from the forest, such as forest residues and sawmill by-products to the advanced bio-oil biozin. The capacity of the plant will be approximately 1 000 tonnes of biomass per day.
The technology chosen for this process will be provided by Shell Catalysts & Technologies, a wholly-owned subsidiary of Royal Dutch Shell. Total investments are estimated at NOK 3.5 billion (≈ EUR 346.8 million).
Local value creation
This industrial venture can create great local value creation in the municipality of Åmli and could create ripple effects for the entire region. We are happy to help facilitate a positive investment decision that can provide important jobs and Norwegian value creation, said Sveinung Hofstad, Director of Innovation Norway Agder.
The preliminary project is scheduled to be completed in early 2021, and the estimated cost for this part of the project is NOK 250 million (≈ EUR 24.8 million). The project is financed by the shareholders and NOK 30 million (≈ EUR 2.97 million) in development grants from the environmental technology scheme to Innovation Norway.
Innovation Norway has also previously supported the project with NOK 4.85 million (≈ EUR 480 600) for the implementation of the concept development. Biozin AS has identified potential locations for additional biozin® production facilities in several municipalities in southeast Norway