Copyright © 2010 Solander Science Park
August 12, 08
Volvo Technology Transfer and the US venture capital fund VantagePoint Venture Partners participate in a private placement of the Swedish company Chemrec AB
The company develops and commercializes technology for converting pulp mills to bio-refineries for highly efficient co-production of pulp and renewable fuels or electricity based on so called black liquor gasification.
- The investment is in line with our strategy to create value for both customers and shareholders and at the same time be a leader in addressing environmental concerns, says Anders Brännström, CEO of Volvo Technology Transfer.
Chemrec’s technology gasifies the biomass in so called black liquor from the pulp industry in order to produce renewable fuels or electricity while recycling pulping chemicals in the black liquor. A development plant is in operation in Piteå, Sweden and a commercial plant based on earlier-generation technology is in commercial operation in North Carolina, USA.
The energy content in the black liquor at all Swedish pulp mills could replace up to 25% of all gasoline and diesel in Sweden or produce up to five percent of all electricity consumed. Pulp mills can with Chemrec’s technology produce several second-generation renewable fuels, for example DME, methanol, synthetic diesel or hydrogen.
Volvo has developed a heavy truck engine for DME and a significant push is taking place to put in place a test fleet for field tests. It is Volvo’s venture capital company, Volvo Technology Transfer, VTT that invests in Chemrec.
- We gauge that this is a good and important deal for Volvo and we are at the same time contributing to the launch of production of second generation fuels, stresses Anders Brännström, CEO of VTT.
The US fund VantagePoint Venture Partners situates this deal within its Clean Tech group which covers technology companies in energy, water and materials.
Vantagepoint manages over 4 billion US of investment and is one of the largest venture capital funds in the world.
- We have evaluated several technologies for conversion of woody biomass to green fuels or electricity and see great potential in Chemrec as its technology is both well progressed and on a scientific basis superior to the alternatives, explains Bernie Bulkin, partner in VantagePoint and previously Chief Technology Officer and Chief Scientist at BP.