Höganäs AB and Cortus Energy AB have signed a Letter of Intent (term sheet) for a continuation of the Probiostål project. The LoI outlines the business case for the next step in the biomass gasification project to replace fossil gas at the Höganäs production facility in Sweden.
In Sweden Höganäs AB, a metal powder and powder products manufacturer and biomass gasification technology developer Cortus Energy AB have signed a Letter of Intent (term sheet) for a continuation of the Probiostål project. The preliminary agreement describes the business case of the next stage of the project whereby syngas will be used to replace natural gas for Höganäs AB. The preliminary agreement also forms the basis to start development of the biomass gasification plant to a modular 6 MW “WoodRoll” unit.
In 2015, Höganäs AB and Cortus Energy began the Probiostål project with basic engineering of a biomass gasification plant with support from the Swedish Energy Agency. Together, the parties concluded that an increase in capacity to 6 MW syngas and a modular system for a future commercial operation would be the best solution for the project. The parties have now entered into a preliminary agreement (term sheet) that describes the commercial fundamentals of syngas supply to Höganäs starting in 2018. Against this background, negotiations on a trade agreement will begin and expected to be concluded during the first half in 2016.
– We are delighted to have now taken the next step on a common way forward with Höganäs. With an upcoming commercial agreement and installation of WoodRoll in Höganäs, we can move quickly from a technical verification of the syngas at the Höganäs furnaces in the Probiostål project to start commercial deliveries. Of course, this assumes that the authentication is successful, said Rolf Ljunggren, CEO Cortus Energy in a statement.
