Pilot study for production of green oil from forest residues

Billerud is to evaluate the technical and market prerequisites for lignocellulose-based pyrolysis products. The project goal is to manufacture green oil from forest residues such as branches, tops and stumps. The green oil can then be turned into renewable energy in customers’ facilities.

The project is based on producing green oil from wood raw material in a full-scale facility at the Skärblacka paper mill. This is about a new type of commercial energy carrier. The project intends to establish the technical and market prerequisites for lignocellulose-based pyrolysis products, biofuel, as a replacement for fossil-based oil.

Billerud has applied for funds from the EU within the framework of the NER300 programme. The European Commission has decided to fund up to 42 commercial and innovative production facilities in order to increase the proportion of renewable energy sources and achieve a reduction in CO2. A decision is expected in the second half of 2012.

Billerud is holding discussions with partners who are interested in future supplies of green oil from wood raw material.

For further information, please contact:
Per Lindberg, President and CEO, +46 8 553 335 01, +46 702 48 15 17

The information is such that Billerud is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 8 a.m. on 9 May 2011.

Billerud’s business concept is to offer demanding customers packaging materials and solutions that promote and protect their products – packaging that is attractive, strong and based on renewable materials. Billerud has a world-leading position within several product segments including paper for consumer packaging and industrial applications. Production takes place at three integrated pulp and paper mills in Sweden and at one paper mill in the UK. www.billerud.com

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