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Varmlandsmetanol wants to build €350M biomethanol plant in Estonia

Estonian media reports that Swedish bioenergy company Varmlandsmetanol AB is interested in building a €350-million (US $412 million) biomethanol plant in Estonia. The company is in discussions with the Estonian government over whether it would be possbile to tax biofuel less and whether legislation could be amended to allow for the production and sale of motor fuel containing three to 30 percent methanol.

We have the technology, we have the material to build the plant, but legislation does not allow for it yet. As the plant would cost €350 million, nobody will invest in anything before it is certain that it would be possible and profitable.

—Madis Olm, Estonian representative of Varmlandsmetanol AB

The plant would produce biomethanol from forest residue and take three years to complete.


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