Södra and Statkraft have made a decision to invest in a new demo facility for fossil-free fuel. The biofuel will be based on forest raw material and the demo facility is expected to be in operation by spring 2019. The total investment will be approximately SEK 500 million ($58.8 million).
The investment will be made through the joint company Silva Green Fuel AS, in partnership with technology provider Steeper Energy Aps and Norwegian financing partner Enova.
The demo facility will be located in Tofte, Norway, and project planning will commence in the winter. Start-up is planned for spring 2019, with a capacity of about 4,000 litres per day. The raw material will consist of residual products from the forest industry.
The demo facility is a first step towards a full-scale facility. It will be used to develop both the process and the technology for producing the new biofuel. In the next stage, the plan is to establish a full-scale facility, with biofuel production for various types of transport, including road and air.
Founded in 1938, Södra is Sweden’s largest forest-owner association, with more than 50,000 forest owners as its members.
Statkraft is a leading international hydropower company, the largest renewable energy provider in Europe and the fourth-largest electricity producer in Sweden.