As discussed in previous posts,
dimethyl ether (DME) is one biofuel that can reduce emissions and complement fossil fuels in targeted regions. One leader of DME production is
Sweden. Sweden’s
Volvo has tested trucks that run on DME for several years, and
Chemrec has proven itself to be an innovator in the development as DME as a viable clean energy product.
Chemrec’s latest
success is its partnership with
Domsjo Fabriker’s refinery in Ornskoldsvik, Sweden
(pictured above left). With the assistance of SEK 500 million grant (US$75 million, or 55 million euros) from Sweden’s Energy Agency, the plant will produce two clean and renewable
biofuels, biomethanol and bioDME.
The investment, which will eventually reach SEK 3 billion (US$450 million, or $330 million euros), the dual product plant will eventually reach a production capacity of 100,000 tons of bioDME or 140,000 tons of biomethanol.
Domsjo, a pulp and paper company that has long acknowledged opportunities in biorefining, has worked on entering an agreement with Chemrec the past several years. Sweden, naturally rich in forest products, has long struggled with the resulting waste from the paper industry. Now that toxic product, often referred to as black liquor, can now be a fuel source for Sweden’s transportation system.
The project is expensive and will take some time to reach a solid return on investment. But with the risks of rising fossil fuel prices and peak oil, it is far more cost-effective to take on challenges like this now than to dither.
Chemrec’s and Domsjo’s agreement, if all goes as planned, should replace the equivalent of 30 million tons of diesel oil, and have the capacity of fueling 2000 heavy trucks annually. Finally, in the future, if other companies can replicate Chemrec’s gasification technology and allow it to scale, the cost of clean energy products should only decrease in the future. To those who say that government should get out of the private sector’s way, projects like these demonstrate that sometimes the private sector could use a lift, especially for capital intensive initiatives like this Swedish venture.
About The Author
Leon Kaye
Leon Kaye is the founder and editor of GreenGoPost.com and its advisory division,
GGP Media.
Contact him to discuss how he can work with your organization or event.
His focus is making the business case for sustainability and corporate social responsibility (CSR).
He writes for San Francisco-based
Triple Pundit,
Inhabitat and now
The Guardian, for which he writes about corporate responsibility, water, and green building. He has also written for AIA's
Architect Magazine.
Leon works out of Fresno and Silicon Valley, California, and when he has free time, he enjoys hiking, gardening, cooking, weightlifting, and planning his next trip to one of the 60 countries he has visited. He has an MBA from USC's Marshall School of Business and is also a proud graduate of the University of Maryland-Baltimore County (UMBC) and Cal State-Fresno.
As discussed in previous posts, dimethyl ether (DME) is one biofuel that can reduce emissions and complement fossil fuels in targeted regions. One leader of DME production is Sweden. Sweden’s Volvo has tested trucks that run on DME for several years, and Chemrec has proven itself to be an innovator in the development as DME as a viable clean energy product.
Chemrec’s latest success is its partnership with Domsjo Fabriker’s refinery in Ornskoldsvik, Sweden (pictured above left). With the assistance of SEK 500 million grant (US$75 million, or 55 million euros) from Sweden’s Energy Agency, the plant will produce two clean and renewable biofuels, biomethanol and bioDME.
The investment, which will eventually reach SEK 3 billion (US$450 million, or $330 million euros), the dual product plant will eventually reach a production capacity of 100,000 tons of bioDME or 140,000 tons of biomethanol.
Domsjo, a pulp and paper company that has long acknowledged opportunities in biorefining, has worked on entering an agreement with Chemrec the past several years. Sweden, naturally rich in forest products, has long struggled with the resulting waste from the paper industry. Now that toxic product, often referred to as black liquor, can now be a fuel source for Sweden’s transportation system.
The project is expensive and will take some time to reach a solid return on investment. But with the risks of rising fossil fuel prices and peak oil, it is far more cost-effective to take on challenges like this now than to dither.
Chemrec’s and Domsjo’s agreement, if all goes as planned, should replace the equivalent of 30 million tons of diesel oil, and have the capacity of fueling 2000 heavy trucks annually. Finally, in the future, if other companies can replicate Chemrec’s gasification technology and allow it to scale, the cost of clean energy products should only decrease in the future. To those who say that government should get out of the private sector’s way, projects like these demonstrate that sometimes the private sector could use a lift, especially for capital intensive initiatives like this Swedish venture.
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