Choren completes biomass to liquid plant in Germany

Freiberg, Germany-based Choren Industries has finished work on its large scale biomass to liquid plant, which it said is the world's first commercial synthetic biofuel production plant.

Choren said the 3.9 million gallon biomass to liquid, or BTL, facility, which will make biodiesel from forest residue and waste wood, will now go into a commissioning phase over the next 8 to 12 months.

"BTL is a key technology for achieving the climate protection objectives of road transport," said Tom Blades, CEO of Choren.

Choren is backed by German automakers Daimler (NYSE: DAI) and Volkswagen (OTC: VLKAY), as well as oil giant Royal Dutch Shell (NYSE: RDS.A).

The company said the commissioning of its new €100 million Beta plant would take place in stages, putting 113 sub-systems in 26 main operating units into operation individually and then consecutively.

"In parallel we are working on a concept for the first BTL plant on an industrial scale, with an annual output of 270 million liters of biosynthetic fuel, to be built in Schwedt, in Brandenburg," said Blades.

"Once the Beta plant has proven its viability, and provided the final decision on investment for Schwedt is made in 2009, production could commence in 2012-2013. But the medium-term legislative industrial policy has to be right for that."

Choren said its synthetic biofuel could be used in all diesel engines without modification.