Norway company Borregaard has announced a bioethanol upgrade project. The company is committing NOK 63 million to the project that includes a new facility to capture and store biogas. Norwegian government agency Enova has awarded Borregaard a NOK 18.9 million grant. The funds are given to projects that promote environmentally friendly restructuring of energy end-use renewable energy production and new energy and climate technology.

As part of the plant improvements, the company will be installing more advanced production technology that will significantly reduce energy requirements during the bioethanol production process. In addition, Borregaard is adding technology that will enable the biofuel to be produced without the use of water.

The ethanol biorefinery upgrade will also include a biogas plant to capture process residues. The resulting energy will then be used to power the plant.

The project work is expected to begin during the second half of 2016. The bioethanol rebuild will be completed in 2017, and the biogas installation will be finished in 2018.