Arbaflame is building a pellet factory for NOK 200 million

Arbaflame is now building its first commercial full-shell factory for the production of the company's patented wood pellets. The new factory at Grasmo in Eidskog will have an annual production capacity of 70 tonnes of pellets, which will be delivered to the French energy company Engie's coal power plant in Rotterdam. Klosser Innovation has assisted the company with facilitation and participation in R&D projects.

- We are now building our first full-scale factory, and thus mark that we are industrially in the process of being a perfect alternative to the coal power plants in the world that are looking for a coal-free and bio-based energy solution, says CEO of Arbaflame Bjørn Halvard Knappskog.

Norwegian-developed technology

The pellet factory is built on Norwegian-developed technology and will deliver on the contract Arbaflame recently signed with Engie for the annual delivery of up to 70 tonnes of pellets. The factory will cost NOK 000 million to build and has received support from Enova of NOK 200 million.

- We are now facing an industrial race with the establishment of more factories in the years to come. We have a mutual intention with Engie to get up to 200 tonnes of delivery as soon as possible, and then gradually increase to a capacity of up to 000 million tonnes, which is the amount the power plant needs for 1,8% renewable conversion, says Knappskog.

- For us, it has therefore been important that the world's first factory is built in Norway, both because it gives us valuable proximity to the project and the expertise, but also because the technology was actually invented and developed here, says Knappskog.

Next-generation wood-based pellets. PHOTO: Arbaflame

Works mostly with R&D in the Kongsvinger region

Ronny Olsson in Klosser Innovation says that Arbaflame's demonstration factory at Matrand in Eidskog municipality, is one of the companies that work most with R&D in the region.

- One of the Kongsvinger region's focus areas is increased utilization of the forest's resources, preferably with value creation locally. Arbaflame's work in R&D in the region is well strategic in relation to the Kongsvinger region and the hinterland. By-products from, among other things, sawmills are processed locally. Long-term agreements on deliveries to Europe secure existing jobs and new jobs are also created, says Olsson.

He further says that Klosser Innovation has over time assisted the company with project-related tasks. Among other things, Klosser has assisted with the work with new European environmental certification for the company and various R&D projects. Klosser Innovation has also led a project to set up its own production of sawdust at the company.

Reduces CO2 emissions at the coal-fired power plant in Rotterdam by 140 tonnes a year

Arbaflame's steam-treated pellets have almost the same properties as coal, are water-resistant and have a high energy density. The special properties mean that the cost of converting the coal-fired power plant is significantly reduced, which is a great advantage compared to alternative bio-products such as white pellets.

- It is a victory for the renewable investment in the Norwegian forest industry that we with Norwegian raw materials produced at our new factory will reduce CO2 emissions at the coal power plant in Rotterdam by approximately 140 tonnes a year, says CEO Knappskog.

Arbaflame has already carried out successful tests at 15 coal-fired power plants around the world, and recently received 180 million in EU support through the Horizon 2020 program to establish a demonstration plant at the same power plant.

Pellets reduce CO2 emissions at coal-fired power plants. PHOTO: Arbaflame