Dong Energy and Novozymes received 39 million euros from the European Union to build a plant in Denmark that will use straw as the raw product for clean energy production, reported the Bloomberg.
The companies were allowed grant for low-carbon projects designed by European Commission’s NER300 program. The project is expected to cost 295 million euros and create 2,500 jobs during construction. Waste heat will be directed to 20,000 homes for heating and hot water.
European Union funding is a prime step, provided the company is in a position to sell the 80 million liters of produced bioethanol. The company need a political and legal framework with a minimum level of biofuel additives in gasoline to ensure the sale, the news agency quoted Jorgen Udby, board chairman, Maabjerg Technologies.
EU members states are about to conclude on higher national levels for second-generation biofuel additives. Finalization of the project will depend on EU member’s supporting statement on the fuel.
The EU proposed a 7 percent cap on food crop-based biofuel that counts toward a 10 percent target for renewable transport fuel by 2020. Construction may start next year and production in late 2017, added the agency.
The facility will be part of the Maabjerg Energy Concept project that’s being developed by a group of companies with the help of local utilities. The project includes electricity, district heating plant and a biogas system.