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Dong Energy to receive second generation ethanol grant

2nd May, 2008

Denmark-based Dong Energy will receive a grant of DKK 54.2 million (€7.3 million) from the Danish Energy Authority's EUDP funds (The Energy Technology Development and Demonstration Programme) for a demonstration plant to produce bioethanol, biofuel and animal feed.

The plant, which will be built in proximity to the Asnæs Power Plant in Kalundborg, will produce 5.4 million litres of bioethanol a year, on the basis of 30,000 tonnes of surplus straw from agriculture, as well as 8,250 tonnes of biofuel and 11,100 tonnes of animal feed.

Biotechnology company Danisco Genencor will supply enzymes and Danish subcontractors will be involved in the construction of the plant. The cost of the build is around DKK 300 million and the plant will begin production towards the end of 2009.

In December 2007, Dong Energy received DKK 22.5 million from the Energy Authority's EFP funds (The Energy Research Programme).

'We can now begin construction of the demonstration plant and we look forward to being able to supplement petrol and coal with an alternative, which is both financially and environmentally sustainable,' Anders Eldrup, Dong Energy CEO, says. 'With our version of a second-generation technology, we can present a solution to the challenge within the transport sector to reduce carbon dioxide emissions.'