Austrocel to kick off bioethanol production at the end of year

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Dissolving pulp producer Austrocel has a multi-year bioethanol supply agreement with Austria's oil and gas company OMV.

Austria's dissolving pulp producer Austrocel is making progress with the construction of the 30 million litres production facility for bioethanol at the pulp mill in Hallein. According to the latest company information, the bioethanol plant will start up operations in November 2020, with first batches of biofuel to be produced in December.

Last October, Autrocel had signed a multi-year biotehanol supply agreement with Austria's oil and gas company OMV. Using second-generation biofuels such as the bioethanol produced by Austrocel would help to reduce the carbon intensity of OMV's fuel products and fulfil legal additive requirements, OMV said.

Under the Renewable Energy Directive II (RED II), a new "Renewable Energy Sources" consumption target of 32 per cent was introduced for the EU member states for 2030. The directive also requires fuel suppliers to supply a minimum of 14 per cent of the energy consumed in road and rail transport by 2030 as renewable energy. The member states have time until the end of June next year to pass national legislation for the implementation of RED II.

The 30 million litres of bioethanol produced at the Hallein biorefinery correspond to approximately 1 per cent of the total gasoline consumption in Austria, Austrocel explained.

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