Södra’s liquid biofuel venture enters a new phase

In agreement with Statkraft, Södra has decided to sell its share in Silva Green Fuel. Biorefineries play a key role in Södra’s strategy and the aim is to implement a future commercialisation in Götaland.

Silva Green Fuel was founded in 2015 by Södra (49%) and Statkraft (51%), with the aim of developing a method for bio-oil production. Silva’s demo facility in Tofte, Norway, has succeeded in producing bio-oil from forest biomass, thereby contributing to an important step towards tomorrow’s liquid biofuels. As this development now enters a new phase, Södra’s commercial assessment is that other partners need to step in.

“Södra’s expertise lies in forestry, and in industrial processes to extract sustainable products from forest raw material. Through the collaboration around Silva, we succeeded in finding a method for converting forest biomass into bio-oil, which is important progress. Södra believes firmly in the technique and, in line with our strategy, we see good opportunities for implementing a future commercialisation in Götaland”, said Catrin Gustavsson, President of the Södra Innovation business area.

In 2015, Södra sold the industrial site at its former pulp mill in Tofte to Statkraft. The agreement means that Södra is now also selling its 49-percent stake in Silva Green Fuel to Statkraft, which will continue to run the company.

Energy and chemicals is a strategic growth area for Södra and will remain a priority when the share in Silva has been sold. Södra sees major potential in techniques that will upgrade forest by-products such as bark, branches and treetops. A future priority will be the ability to implement a future commercialisation of biorefinery to our existing industrial structure in Götaland.

www.sodra.com

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