12 Jun 2008

Xynergo - the company that will produce diesel from woody biomass- is established

Xynergo's first objective is to build a prototype plant for the production of synthetic diesel based on woody biomass at Norske Skog Follum in Norway. Such diesel will be virtually CO2 neutral. Moreover, fuel production based on woody biomass means that the raw materials will not compete or conflict with food production.
Xynergo is owned by Norske Skog, Viken Skog, Allskog, Mj°sen Skog and Statskog. The Company Board consists of Rune Gjessing (senior vice president for strategy in Norske Skog), Olav Sletbakk (head of sales and development in Viken Skog), Kjell Bj°rndalen (former president of the Norwegian United Federation of Trade Unions), Wenche Ravlo (general manager of Norske Skog Follum) and Tom Bratlie (vice president corporate affairs in Norske Skog). In addition Stein Roar Eriksen as observer for the Norske Skog employees. Rune Gjessing is chairman of the board of Xynergo and Klaus Sch÷ffel is managing director.
"We are now entering an exciting and demanding phase for production of second generation biofuels. Concept development and the interplay between industrial biofuel production and sustainable forestry is our main focus. We will also establish a close dialogue with the authorities to discuss necessary framework conditions for the development of technology and for the start of a new and sustainable industry," says Klaus Sch÷ffel.
A prototype plant will be built close to Norske Skog Follum and aims to be operative at the end of 2010. The company is planning a full-scale facility which could be operative in 2015. Such facilities could be able to produce diesel quantities corresponding to approximately 15 per cent of the annual Norwegian diesel consumption for road transportation.
In 2006, road traffic was responsible for 9.9 million tonnes out of the total Norwegian CO2 emissions of 43.3 million tonnes (source: Statistics Norway, "Emissions to air by source - 2006").
"Using diesel from woody biomass will be an important contribution that Norway can reach its CO2 emission targets. If we can successfully replace 15 per cent of the current Norwegian diesel consumption by synthetic diesel based on woody biomass, Norwegian CO2 emissions could be reduced by 700,000 tonnes annually. This would mean a seven per cent reduction in road traffic emissions, "says Sch÷ffel.
Xynergo is currently recruiting new employees who will be part of an exciting industrial development in close proximity of the industrial wood processing environment at Norske Skog Follum.
Oxen°en/Follum, 12 June 2008
Xynergo AS
For more information please contact:
Vice president corporate affairs Tom Bratlie in Norske Skog on telephone number + 47 905 21 904