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CELLULOSIC ETHANOL COST-COMPETITIVE AROUND 2013/14 – CEO SEKAB

10-23-2007 01:02 PM CET | Energy & Environment

Press release from: Ethanol Statistics

Sekab Cellulosic ethanol form wood chips

Sekab Cellulosic ethanol form wood chips

Sekab, the largest ethanol producer in Sweden, currently has a pilot plant to produce cellulosic ethanol. “We plan to have a development plant that is 40 to 50 times larger up and running in 2010” says Per Carstedt, Sekab’s Chief Executive officer in an interview with Ethanol Statistics. “We think that will take 2 to 3 years to operate and to build a new one, than you’ll have cost-competitive technology probably around 2013-2014.”

“But having technology is one thing, applying it large scale is another. For that you need a balance in demand and specifically in supply of biomass, since you cannot produce in a sustainable manner if you use more than the annual growth of biomass.”

Mr. Carstedt explains why supply and demand of biomass is ultimately more important than the technological issue. “As oil reserves are depleting the question becomes, how does it compare to other renewable energies, which depends on where we are in 10 years. Will we still have the capacity to expand the production from grains? If you don’t, what else do you have except cellulose? And at that point, you are only competing with yourself. At that stage, cost-competitive depends on the price of biomass, making feedstock development key. Subsequently, the question than turns to volumes. Are the residuals sufficient, or do we have to look to other fractions? This is a very step wise development.”

The entire interview, titled ‘Sustainable Transportation: A New Way of Thinking’, can be found on

http://www.ethanolstatistics.com/Expert_Opinions/Sustainable_Transportation_A_New_Way_of_Thinking_221007.aspx

In the article, Mr. Carstedt discusses the most important components of government support in Sweden, Sekab’s strategy for first and second generation ethanol and the subjectivity of cost-competitive technology.

Ethanol Statistics
P.O. Box 5058
3301 CB Dordrecht
www.ethanolstatistics.com

Contact:
Rob Penne
r.penne@ethanolstatistics.com
+31 6 5432 5588

Ethanol Statistics is a European market research and business information publisher. Through its
website, it provides professionals in the ethanol industry the latest ethanol news, commodity prices,
expert opinions and market analyses.

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