Newsletter February 2014 It is exciting times for Bioendev! On October 9, 2013 two important steps were made for both BioEndev and a future development of sustainable biofuel! They were a BioEndev’s Pilot plant opening and sod-turning ceremony of a new demonstration plant in Holmsund. Learn more about the opening on Page 2. Ingemar Olofsson, Göran Ernstson, Lennart Holmlund, Elvy Söderström & Anders Nordin CEO Anders Frisk has the word There are a lot of things happening in BioEndev right now and I’m glad to be appointed as a new CEO in such an exciting period for our company. Getting started as company with a relatively low profile, we are now heavily investing to be the first ones to deliver a profitable torrefaction plant at a big commercial scale. At the moment we are hiring new employees and working intensively to finalize a design of a torrefaction reactor; construction of an IDU plant in Holmsund is in a full play. These activities have boosted interest from outside, and many people are eager to know more about BioEndev, which is of course very positive. Despite the fact that global policies on renewable energy are low a pellets market is growing by more than 20% a year and all previous forecasts for 2020 look to have been surpassed considerably. For BioEndev’s technology the future seems to be even brighter since it gives a possibility to create an even better product. It is said to be the next generation of pellets and what we decided to call “The pellet 2.0”. BioEndev potential contribution in a long is providing a Swedish forest industry with an opportunity to refine and sell their raw materials in new ways. Umeå region has a lot of knowledge and experience in forestry and energy sectors and the University is at the forefront of a research in the area of biomass refining. These provide BioEndev with favorable conditions to continue growing and recruiting more skilled employees to the already existing super team! You are very welcome to contact us for any further questions! Anders Frisk CEO, BioEndev AB 1 Opening and sod-turning The 9th of October will be remembered as a great day for a renewable energy technology, says Göran Ernstson, CEO at Umeå Energi and Chairman of BioEndev. BioEndev is one of the world leading companies when it comes to research and development of a so-called torrefactioning, - a technology that enables transforming biomass into so-called “green coal”. Around 120 people gathered to celebrate Processum´s 10 anniversary and the opening of BioEndev´s pilot plant. Göran Erstson began the ceremony by introducing BioEndev´s technology. BioEndev’s technology is at the forefront and now it’s time to speed up the process with both our pilot plant and a larger demonstration plant, which is estimated to be complete in mid-2014. We hope to be able to sell a commercial-scale plant already during 2014. Municipal councils Elvy Söderström, Örnsköldsvik and Lennart Holmlund, Umeå opened the pilot plant by pushing a button. The audience could then see how the wood chips went through the plant and turned into “green pellets”. After this, the ceremony continued outside where a symbolic Holmsund had been built. The first sod for the new demonstration plant was taken on the stage. Umeå Energi is one of the BioEndev owners and is investing 12 out of the approximately 47 million SEK, which the new development plant in Holmsund will cost. Other major investors are the Energimyndigheten (27 million SEK) and SCA (5 million SEK). - We see this engagement as an important part, among others, in Umeå Energi’s ongoing work towards a more sustainable future, says Göran Ernstson. 2 The IDU-project This is the IDU-project The purpose of an industrial demonstration and development plant, IDU, is to test patented methods to produce torrefacted pellets/ briquettes based on local biofuel. The IDUproject is a result of many years collaboration between research, industry and government. The aim is to demonstrate methods to process biomass into “green coal”, which can be used as a fuel in energy and process industries and therefore reduce their impact on climate. The IDU project will also examine the commercial possibilities for torrefactioned biofuels in new markets. The project is three year collaboration among BioEndev, Umeå Energi, SCA and Energimyndigheten. The project started in 2013 and investments are to reach 47 MSEK. Target The plant will produce torrefactioned pellets which will be used and tested in different projects in collaboration with customers. It will prove technological solutions and show patents’ value. BioEndev AB is in charge of the construction. Main contractors for the project are: Bruks AB: Drying delivery, product management, electrical automation, coordination of installation Westmech: Delivery of torrefieringsreactor, gas pan and nitrogen systems Münch: Delivery of pellet press and peripherals. In October permission from Byggnadsnämnden was obtained, which completed a puzzle to begin plant’s construction. As agreements and delivery contracts with suppliers are already established it is now possible to be fully focused on design and construction of the plant. 3 Short-movies about Bioendev BioEndev sees opportunities in the global challenges In a short film produced in cooperation with Processum, Anders Nordin is telling about the great challenges we are facing as oil resources are diminishing and a greenhouse effect is increasing. However he also talks about opportunities that BioEndev creates with its cost-effective torrefaction of woodchips. This torrefaction technology created by BioEndev, has 8 different advantages contributing to cost savings. Check out the movie and learn more about these advantages and BioEndev. See the movie via the link: https://vimeo.com/76487777 We turn Sweden’s green gold into energy BioEndev sees as a biomass what in forest logging is considered to be useless forest waste. The biomass goes through several steps to be turned into an energy-efficient biofuel. Torrefaction increases the energy value of a biomass, as the material becomes more waterproof and brittle. The process as well stops biological activities within the biomass. In an information movie, a process engineer Ingemar Olofsson explains all the steps of turning branches from the forest into a liquid biofuel. See the movie via the link: http://www.youtube.com/watch?v=aW_3TBbRZRE 4 Our Partners This page we would like to devote to our partners and investors. TRB is one of our partners and in this newsletter we have decided to let them make a short presentation of their company. TRB Sweden AB is owned by 12 major transport and logistics companies from all over Sweden. The availability of sustainable fuel is essential for the transport industry’s future activities. We believe that synthetic diesel based on renewable forest material will take a significant place in a range of various fuel types. We have high expectation of the synthetic diesel as it could be used by all vehicles and fleets which belong to TRB founders and make them more sustainable. BioEndev’s work contributes to reaching a goal and brings us closer to producing a renewable fuel. Westmech BioEndev AB Mail adress c/o Umeå Energi AB Box 224 SE-901 05 Umeå Sweden Office: Tvistevägen 47, Umeå Pilot plant: Gösta Skoglunds Väg 10 Email: info@bioendev 5