Volvo investing in the development of renewable fuels

Volvo Technology Transfer AB investing in Chemrec AB, a company that has developed a technology for the production of synthesis gases, an important component in the production of alternative fuels of various types.

This investment is part of the Volvo Group’s drive to help speed up the development of renewable fuels for the heavy vehicle industry.

Swedish company Chemrec has developed a technology that specialises in the production of synthesis gas, a first stage in the production of alternative fuels. At its pilot plant in Piteå in northern Sweden, Chemrec produces synthesis gas from black liquor, which is a residual product from the pulp industry. Today this black liquor is incinerated in soda furnaces where the chemicals are recovered and where the energy that is generated has a relatively low efficiency rating. By instead gasifying the black liquor, what comes out is a number of by-products including synthesis gas, which has a higher efficiency rating. With this synthesis gas it is possible to utilise known techniques to extract vehicle fuels such as bio-diesel, hydrogen gas, synthetic diesel and DME.

Work on development of this technology has been conducted for more than 15 years and today Chemrec can extract synthesis gas from black liquor in continuous operation. The next stage will be to produce fuel. Volvo Technology Transfer AB is now investing in Chemrec AB together with American venture capital company Vantage Point.

“Chemrec has shown that there is an efficient process for converting biomass into renewable fuels,” says Anders Brännström, President of Volvo Technology Transfer. “The Volvo Group has no intention of becoming a fuel supplier but wishes instead to continue to conduct engine development on a broad front. On the other hand, we do want to participate in the development of new processes for the production of alternative fuels.”