Domsjö Fabrikers billion investment in environmental fuel DME cancelled because the new Indian owners are not interested in the project, writes local newspaper.
As earlier reported previously Domsjö Mills planned together with the company Chemrec to build a billion facility for the production of bio-methanol and DME with black liquor as raw material. The planned production would have sufficed to 2000 trucks.
The project was welcomed and supported by the Swedish government, the European Commission and a number of venture capitalists. The Agency also granted Domsjö Factories an investment of half a billion dollars for the construction, which was estimated to cost 3.5 billion.
But Indian Aditya Birla Group, which bought up Domsjö Mills last year, has thus now called off the investment.
Domsjö Fabrikers CEO Lars Winter said to Örnsköldsvik Allehanda that decision was preceded by extensive analysis.
– Gasification project did not fit into the new owner’s business plan. They want to invest in Örnsköldsvik, but has a different direction of will, says Winter told the newspaper.
Editors comment: The investment has also become difficult because of lack of fuletax information for more than a few years ahead. Generous grants for investments was not enough to balance the uncertainty regarding future support and taxation in the fuels area in Sweden as well as in Europe.