Shell to provide financial support for Norwegian biorefinery project
Biozin Holding AS has announced that it has entered into an agreement with Shell for financial support of their ongoing work to build a full-scale biocrude production facility in Åmli, Norway. The funding will support ongoing activities as part of the pre-engineering phase of the project.
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.
According to Biozin Holding, the funding, the amount of which has not been disclosed, will support ongoing activities as part of the pre-engineering phase of the project. In June 2019, Biozin Holding was awarded NOK 30 million (≈ EUR 2.97 million) from Innovation Norway for the preliminary design.
When completed, the production facility will convert woody feedstock, such as forestry residues and by-products from the sawmill industry, into an advanced second-generation crude bio-oil, “biozin”.
Pending technology qualification, Biozin Holding aims to utilize Shell’s IH2 technology for the conversion process.
We are delighted with this agreement which makes a very valuable contribution to the ongoing work of realising a full-scale production facility, said Thomas Skadal, CEO, Biozin Holding.
Once running the first Biozin plant will be able to convert approximately 1000 dry tonnes of biomass per day. The bio-oil can then be refined, blended and distributed as a cleaner fuel.
Biofuels can play a valuable role in helping to decarbonise marine, aviation, and heavy-duty transport. Collaboration will be key to a successful energy transition and we are happy to be helping Biozin Holding to progress this project which could provide a great opportunity to develop IH2 technology, said Andrew Murfin, General Manager Advanced Biofuels at Shell.
During the pre-engineering phase, Biozin Holding will further develop the basis for its final investment decision, as well as the contract for the detailed engineering, procurement and construction (EPC) of the production facility.