EU application for major green chemistry investment

Sweden’s chemistry group Perstorp, and partner companies Fortum and Uniper, have submitted an EUR 97 million application to the EU Innovation Fund for Project Air. This unique project aims to build a production facility for sustainable methanol in Stenungssund, Sweden, which could reduce global CO2 emissions by 400,000 tonnes, equivalent to approximately 1% of Sweden’s territorial emissions.

The ambition is to already by 2026 achieve large-scale production of sustainable methanol, which in turn can be used in making chemical products with thousands of applications, enabling an improved climate footprint in several value chains. The project is possible thanks to an innovative usage of biogas, hydrogen from electrolysis and residue streams, as well as carbon dioxide recovered from Perstorp’s own facilities, to produce the methanol. This means the project will utilize carbon atoms that would otherwise become CO2 emissions.

“The chemicals industry is a key player in the sustainable transformation of society. Making Project Air a reality is an urgent priority for Perstorp, our customers, and partners as it creates increased availability of sustainable chemical products throughout our value chains,” said Jan Secher, President and CEO of Perstorp. “This project is a unique opportunity, but also a challenge for Swedish industry and energy policy. It is one of several industrial transformation projects seeking to use biogas as a raw material, and Sweden should take steps to stimulate a sufficient supply for these purposes.”

Perstorp believes that Project Air with a modified application is well positioned to receive support from the EU Innovation Fund, but the company is also investigating alternate modes of future funding. The total investment in Project Air is expected to be 236,3 million euros.