Presentation here
Press release here
Shell and Bergene Holm have entered into a new and more comprehensive collaboration agreement with Biozin, which entails an increased pace in the development of technology for low-carbon fuel from residual raw materials from the forest. This demonstrates a common commitment to reduce CO2 emissions from the transport sector.
The specific goal of the collaboration is to establish a full-scale production facility for advanced bio-crude oil in Åmli in Agder, with a planned final investment decision in the second half of 2023. The new collaboration agreement entails increased financial support from Shell by approximately NOK 30 million, which will in addition to an equal amount given in 2019. In connection with the new cooperation agreement, Bergene Holm has also used an option to purchase Preem's shares in Biozin, and in addition provided Biozin with additional equity. "For us at Biozin, it is very positive that Shell and Bergene Holm in this way confirm a long-term commitment to our project," says Thomas Skadal, CEO of Biozin. «Shell has the technology and resources, while Bergene Holm has broad expertise and experience in the wood industry and handling raw materials from the forest. Together, this makes us confident that we will be able to realize the production plant for bio-crude oil in Åmli ». The demand for low-carbon fuel for the transport sector is expected to double by 2030. Shell, Bergene Holm and Biozin are working to meet this need and thus contribute to reduced CO2 emissions. The capital injection into Biozin is important for the next phase in the upscaling of Shell's IH2® technology, which produces sustainable low-carbon fuel from biomass and waste from forestry and agriculture. The IH2® technology, when scaled up, has the potential to make a significant contribution to reducing CO2 emissions from both road transport, shipping and the aviation industry through the production of renewable petrol, diesel and sustainable aviation fuel. Shell's Director of Advanced Biofuels, Andrew Murfin, is pleased with the project so far. «Bergene Holm's expertise in forestry and handling of raw materials and Biozin's long-term commitment in biofuels make them perfect partners for us in the work of upscaling IH2® technology. Together, we can ensure that the project has access to sustainable residual raw materials from the forest and sawmill industry, while at the same time taking care of the forest in a good way. " Murfin also points out that the Norwegian authorities support projects such as this in the development of environmentally friendly technology, and that the local authorities in Åmli facilitate the conditions for industrial establishment "There is still risk associated with both the technology and the project, but with the authorities 'support and our partners' expertise, we have a good basis for using Shell's IH2® technology on a commercial scale in Åmli. We know that if this project is a success, it will help us to help our customers decarbonise their business ", says Andrew Murfin. "We have now strengthened our involvement in the project. For us, this project is important because it will contribute to sustainable forestry in the region and ensure good utilization of the raw material for the sawmill in Åmli. We have invested more than NOK 300 million in this sawmill in the last 10 years ", says Bergene Holm's CEO Erland Løkken. Since the previous collaboration agreement was established in November 2019, Shell's IH2® technology has been further developed and continuously tested at several of Shell's international research centers. The final technology qualification remains, and has unfortunately been delayed due to the Covid-19 pandemic. The plant in Åmli will convert residual raw material from forestry and residual products / waste from sawmills into a sustainable, light hydrocarbon liquid. This contains C4-C20 hydrocarbons and constitutes an advanced bio-crude oil for use in all petrochemical products. In full operation, the plant in Åmli will be able to convert around 1000 tonnes of dried biomass per day. The advanced bio-crude oil will be sold and further processed into sustainable, renewable products such as aviation fuel, diesel and petrol. The plant can also produce biochar, which is an important product in connection with carbon capture. By using advanced bio-crude oil and biochar, CO2 emissions can be reduced by from 72 to 90 per cent compared with the use of fossil crude oil. A final decision to invest about NOK 4 billion in the Biozin plant in Åmli is expected in the second half of 2023. Start-up of commercial production of bio-crude oil is planned for the first quarter of 2026. BACKGROUND: Biozin is a Norwegian company owned by Bergene Holm. Biozin was established to produce renewable bio-crude oil from raw materials from the forest and waste products from Norwegian forestry and sawmills. Bergene Holm is Norway's second largest company in wood processing, with around 450 employees and a turnover of NOK 1.8 billion. Bergene Holm operates 7 production facilities and other businesses in southern Norway. The company has more than 70 years of experience from the Norwegian forest industry. Shell is a global energy company that has been established in Norway for 109 years. The company has about 80,000 employees in more than 70 countries. As part of the transition to becoming a profitable net zero-emission company by 2050, Shell announced earlier this year an ambition to increase renewable fuel production with the octagon, and this includes three categories of low-carbon fuels; advanced biofuels, renewable natural gas (RNG) and new fuels (such as hydrogen). CONTACT PERSON: BIOZIN: CEO THOMAS SKADAL, +47 905 08 216, [email protected], WEBSITE: WWW.BIOZIN.NO
2021 June – Press release here