DONG Energy, a leading North European energy group headquartered in Denmark, is to receive DKK 54.2m (USD 11.6m) in funding from the Danish Energy Authority for a bioethanol demonstration plant in Kalundborg on the island of Zealand. The plant will produce 2nd generation bioethanol, biofuel and animal feed from surplus straw from the agricultural sector. Danisco, one of the world's largest producers of food ingredients will supply enzymes, while Statoil will sell the produced ethanol. The total investment in the new facility is estimated to be around DKK 300m (USD 64m).
"We are very satisfied with the support from the Danish Energy Authority, says Anders Eldrup, managing director of DONG Energy to financial daily newspaper Børsen. "We can now start building the demonstration plant and look forward to supplementing petrol and coal with an alternative fuel which is both financially and environmentally sustainable. With our 2nd generation technology, we can present a solution to the transport sector's challenge of reducing CO2 emissions."
The plant will be built close to Asnæs Power Station in Kalundborg, and will have a capacity to process 30,000 tons of straw annually, which will be converted into 5.4 million litres of bioethanol, 8,250 tons of solid biofuel and 11,100 tons of animal feed. Production is slated to come on stream by the end of 2009.
DONG Energy was founded in 2006 as the result of a merger of six Danish energy companies - DONG, Elsam, Energi E2, Nesa, Copenhagen Energy’s power activities and Frederiksberg Forsyning. DONG Energy employs approx 5,100 people and in 2007 generated revenues of DKK 41.6bn (USD 8.8bn).