EU Awards BillerudKorsnas EUR 31.4 Million Within Framework of NER300 Programme

The goal of BillerudKorsnas' project is to extract green oil from forestry residues such as branches, tops and stumps.

Dec. 18, 2012 (Press Release) - The [European] Commission has decided to finance commercially-viable and innovative production facilities to expand the use of renewable energy sources and reduce CO2emissions.

BillerudKorsnas’ project on the production of green oil from forestry residues has been allocated funds within the scope of this initiative.

The aim of the project is to extract green oil from forestry residues such as branches, tops and stumps. The project is based on the idea of producing a new type of commercial fuel at a full-scale facility at Skarblacka Mill.

“We are delighted at the EU’s affirmative response to this forward-looking venture. On the basis of this positive decision, we will now continue with our project planning and I anticipate news on the way ahead in 2013,” says Per Lindberg, President and CEO, BillerudKorsnas.

BillerudKorsnas is engaged in discussion with joint venture partners who are interested in a future supply of green oil from forest raw materials.

BillerudKorsnäs offers packaging manufacturers and brand owners added value in the form of brand-reinforcing, productivity-enhancing and environment-conserving packaging solutions. Billerudkorsnäs has a world-leading market position within primary fibre-based packaging materials.

SOURCE: BillerudKorsnas

On Dec. 18, 2012, the European Commission awarded over EUR 1.2 billion to 23 highly innovative renewable energy demonstration projects under the first call for proposals for the so-called NER300 funding programme.

The projects will be co-financed with revenues obtained from the sale of 200 million emission allowances from the new entrants' reserve (NER) of the EU Emissions Trading System.

The projects cover a wide range of renewable technologies — bioenergy (including advanced biofuels), concentrated solar power, geothermal power, wind, ocean energy and distributed renewable management (smart grids).

NER300 funding will provide up to 50% of the 'relevant costs' of the project, a term in essence meaning the additional costs compared to existing, proven technologies; the rest will be covered by private investment and/or additional national funding. NER300 funding will be made available on an annual basis, based on proven performance (the amount of green energy produced) and the meeting of knowledge-sharing requirements.