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Colabitoil and Organofuel sign exclusive advanced biofuels and biojet deal

In Sweden, renewable fuel developer, and distributor Colabitoil Sweden AB has announced that it has signed an exclusive agreement with compatriot biotechnology and process developer Organofuel Sweden AB on global licensing for the production and sale of renewable aviation fuel and renewable gasoline.

Colabitoil Sweden has signed an exclusive agreement with compatriot biotechnology and process developer Organofuel Sweden on global licensing for the production and sale of renewable aviation fuel and renewable gasoline. Jan Nordlöf  (left) CEO, Colabitoil Sweden, and Italo Sanhueza, CEO, Organofuel Sweden (photo courtesy Colabitoil).

The agreement is exclusive for 50 years and covers the production of renewable aviation fuel and gasoline based on Organofuel’s international patent-pending technology. The agreement also includes the rights to license other biorefineries to produce the bio-propellants under license.

According to Colabitoil, the agreement is of great importance for the company’s future development. The construction of a pilot plant for this purpose is of a minor financial outlay as the royalties to Organofuel are derived from commercialisation.

The technology is a proven catalytic reforming of ethanol. According to Organofuel, its patent-pending process is very energy-efficient and is based on chemical catalysis that works at low pressures and low temperatures, which lowers both energy requirements and capital costs for fuel production.

Both bio-propellants have excellent performance with high energy content and a cloud point temperature of -70 degrees. The renewable gasoline can replace the fossil without modifications of engines with retained power.

The global needs for renewable fuels are very large. Especially with the goals that include a reduction obligation in Sweden and Europe. The advantage of this technology is that access to raw materials is unlimited. We, therefore, take the step directly from Organofuel’s validated technology in the laboratory to the construction of a pilot plant and conducting tests in 2019, said Jan Nordlöf, CEO of Colabitoil Sweden.

Colabitoil has already started the environmental permit process for the construction of a production facility in the Norrsundet, Sweden. Existing infrastructure with rail, port, and proximity to the E4 motorway makes Norrsundet a strategic and natural location. The possibility of producing renewable aviation fuel and gasoline thus complements Colabitoil’s goal of producing renewable diesel HVO to cover more markets.

The choice was between several players, but the final choice fell on a strategic and long-term collaboration with Colabitoil. Together, we are convinced that we will be able to satisfy the market with renewable products and meet the global needs of the future, said Italo Sanhueza, CEO of Organofuel Sweden.

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