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State Aid

State Aid: ESA approves aid for greener production of wood pellets



EN |  NO 

The EFTA Surveillance Authority (ESA) has today approved a grant of NOK 138 million (approx. EUR 15.2 million) to Arba Follum AS for a demonstration project in Follum, Norway.

The project aims at demonstrating a novel, highly efficient process for producing black pellets. This product is relatively new and can substitute, partly or fully, fossil coal with only minor adaptions and investment costs needed at the relevant power plant.

Compared to alternative technology used to produce black pellets, the different elements in the new production technology will give substantial energy savings for the production. In total the energy savings amount to 142.5 GWh per year.

This project can further improve an environmentally friendly alternative to coal. ESA welcomes well-targeted support for innovation and green technologies and has previously approved state support for several demonstration projects in Norway”, says ESA President Sven Erik Svedman.

ESA raises no objections to the proposed measure under the EEA state aid rules; among other things because the new technology will be available to third parties once it has been successfully verified in the demonstration plant.

The aid will be granted by Enova under the new technology programme, which forms part of the Energy Fund scheme as approved by ESA in July 2011. The grant had to be individually notified to ESA for a detailed assessment because of the amount of aid.

A non-confidential version of the decision will be published in the register of state aid decisions on ESA's website, normally within a month.



For further information, please contact:

 Ms. Anne Vestbakke
Head of Communications
tel. +32 2 286 18 66
mob. +32 490 57 63 53

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