AGA Gas AB and Lantmännen Agroetanol AB have signed a Letter of Intent for the construction of a carbon dioxide factory that both utilises and purifies carbon dioxide.
The factory is to be built on the premises of Lantmännen Agroetanol on Händelö in Norrköping, eastern Sweden.
The location is intended to take advantage of the infrastructure within the area, with the close proximity to the railway, harbour and the European highway. Norrköping is thought to be Sweden’s tenth largest city and eighth largest municipality, situated at the mouth of the river Motala ström, an inlet of the Baltic Sea
The new carbon dioxide factory will be put into operation during autumn 2013.
Lantmännen Agroetanol is part of the Lantmännen Energi division that produces bio-ethanol and protein products to the cattle feed market.
The production process also generates carbon dioxide as a by-product, which will now be taken care of and purified for further distribution to AGA’s customers in a cooperation project.
AGA cites increased market demand for carbon dioxide as a significant backdrop to the new deal.
Jan Bäckvall, Head of Region Europe North, AGA AB, said in a statement, “We have discovered an increased demand for carbon dioxide from many of our customers. The co-operation with Lantmännen Agroetanol combines cost-efficient production with improved circulation and environmental benefit.”
“Taking advantage of the synergy effect between industrial companies as in this case, we see as an important step for improved utilisation of resources which leads to less negative impact on the environment.”
Lantmännen also sees the benefit of such synergy. Carl von Schantz, Division Manager of Lantmännen Energi, explained, “Lantmännen has the ambition of creating more value for all parts of the raw material in a sustainable way. Through the co-operation with AGA the possibility of large-scale production of carbon dioxide in Sweden is created.”
Spotlight on Scandinavia
Sweden is the largest of the industrial gas markets in Scandinavia, worth around $565m in gas revenues in 2010, gasworld understands. That
represents a growth of 3.5% over 2009, when gas revenues totalled $546m.
Learn more about the Scandinavian industrial gas climate in the upcoming March issue of gasworld magazine, when our Regional Markets feature will focus on the gas industries of Denmark, Norway and Sweden.
The same issue will also feature an interview of the month with Danish industrial gases company Strandmollen A/S and Managing Director Alex Buendia in particular.
If you’re focus is on West & Northern Europe, be sure to get involved in the March issue of gasworld magazine. Advertising enquiries are still being taken now – contact either: email@example.com or Kevin.firstname.lastname@example.org