Biofuel Project Stalled Despite Substantial State Funding
A Norwegian biofuel project, Biozine, has been halted despite securing commitments of 1.3 billion Norwegian kroner in funding from Enova, the EU Innovation Fund, and Innovation Norway. The project, intended to produce 120,000 cubic meters of bio-oil annually, was stopped in 2023 after Shell determined the project’s economics were too uncertain, according to NRK.
The failure of biozine adds to a pattern of profitability challenges for biofuel production in norway, and highlights the financial risks inherent in green energy initiatives. The project utilized Danish-Canadian Steeper Energy’s hydrothermal conversion (HTL) technology, a process that uses hot water to break down biomass – differing from methods like pyrolysis, gasification, and fermentation. Biozine’s collapse follows similar difficulties faced by othre biofuel ventures, raising questions about the viability of large-scale biofuel production in the country.
