Danish biorefinery Maabjerg Energy Concept receives EU funding

Plans for constructing a large scale production facility for 2nd generation bioethanol in the western part of Denmark has made a huge step forward: The EU Commission has awarded €39 million in funding from the NER300 programme. Maabjerg Energy Concept is a consortium of companies: Energy company DONG Energy, enzyme producer Novozymes and local utilities Vestforsyning, Struer Forsyning and waste management company Nomi.

"The NER300 award decision is fantastic news and an important recognition of the project. It's a big pad on the shoulder for everybody who's been working hard to optimize technical and financial details since the project launch in August 2011. This will energize us and motivate us to cross the finish line," said Jørgen Udby, chairman of the consortium. "EU funding is a crucial step. But we also need to be sure we can sell the 80 million liters of 2nd generation bioethanol that we plan to make, before we give the go-ahead for construction of our bioethanol plant. To ensure that, we need a political and legal framework setting a minimum level of 2nd generation biofuel additives in gasoline," Udby explained, adding that the EU's decision to set a minimum level of 0.5 percent 2G additives by 2020 is a good start - with possibilities for member states to raise the bar.

The partners behind the Maabjerg Energy Concept consortium are currently working on the third and final version of the project business plan. Once again the finances have improved. "It looks like we won't need further funding, apart from the NER300 award, so all we need now is for EU member states to set ambitious goals for 2nd generation biofuel additives and a Danish legal framework for large scale production of bioethanol," Udby said.

Source: Maabjerg Energy Concept