Buying into biomass

Shell Deutschland has acquired a minority equity stake in Choren Industries, the developer of a biomass-gasification process called Carbo-V that converts biomass, such as woodchips, into ultra clean tar-free synthetic gas.

This 'syngas' can then be converted into synthetic bio-fuels using the same Shell Middle Distillate Synthesis (SMDS) technology that Shell has developed for Gas to Liquids production (conversion of natural gas into synthetic oil products).

“We believe that the combination of both companies’ complementary technologies will enable the construction and operation of the first medium-sized 15,000 t/a Biomass to Liquids (BTL) plant,' explained Rob Routs (Executive Director Downstream) from Shell.

The plant itself will be located at Choren’s premises in Freiberg and will pave the way towards more attractive large-scale plants.

The synthetic fuels made from biomass have identical composition to synthetic products derived from natural gas – yet they have the advantage of being sustainable and environmentally friendly because they are based on renewable feedstocks.

BTL Fuel is as clear as water and virtually free of sulphur and aromatic substances. Moreover, it can either be used as a pure product or in a blend with conventional diesel fuel. Initially, it will only be available in limited volumes until the technology progresses and larger plants can be built.

Traditional bio-fuels such as RME (rapeseed oil methyl ester) and ethanol are first generation bio-fuels. They are made using the same parts of plants (rapeseed, grain or sugar cane crops) that are also used in food production. Competition between fuel and food for these crops has the potential to impact upon both availability and price. In contrast, biomass based BTL Fuel or ethanol produced from ligno-cellulose are second generation bio-fuels.

Shell’s stake in Choren is still subject to approval by the German cartel authorities.