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renewable energy

Örnsköldsvik biogas project canceled

Donsjö Fabriker specialises in processing forestry industry byproducts. Photo: Lennart Sundwall

A major investment into eco-friendly energy in Sweden has been canceled, reports local paper Örnsköldsvik Allehanda.

The new owners of Domsjö Fabriker have decided not to go ahead with the planned factory in northern Sweden, that would have meant 400 jobs for the Örnsköldsvik region.

Despite support from the Swedish government, the EU Commission, plus companies like Volvo, the Indian-based firm Aditya Birla Group says that this project is not in keeping with their business plan.

The planned project would have produced biogas from a liquid byproduct of the paper industry. This would have needed an investment of close to US$ 500 million. Almost US$ 70 million had already been promised in subsidies.

Daniel Johansson at the Swedish Environment Ministry says that they are having a good dialogue with other companies, and that hopefully another investor will develop this DME biogas.

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