Borregaard received a commitment of a NOK 6 million grant from Innovation Norway’s Bioeconomy Scheme. According to the announcement, the grant will fund further development of the biorefinery concept in Sarpsborg.
The project receiving the grant aims to develop high-value cellulose products. The project may result in increased added value and new industrial opportunities for Borregaard in Sarpsborg. By way of chemical and physical modifications, opportunities are being explored to manufacture cellulose products for various industrial applications, including in animal feed and the construction industry.
Tom Erik Foss-Jacobsen, director of Borregaard’s Speciality Cellulose activities, commented:
“This grant allows us to move from the idea phase to a project with dedicated resources and partners. Research and development are the key to restructuring and increased competitive ability in the industry. Larger businesses are well-positioned to succeed, but support for innovation work mitigates risk and often triggers investments for companies such as Borregaard.”
In 1Q2017 Borregaard increased EBITA adjusted margin to 17.6% in 1Q2017.
Earlier Borregaard announced an investment program to upgrade and specialise the production facilities for lignin products at the Sarpsborg site in Norway.
The company operates the world’s most advanced biorefinery. By using natural, sustainable raw materials, Borregaard produces advanced and environmentally friendly biochemicals, biomaterials and bioethanol that replace oil-based products. It has 1050 employees in 16 countries and had revenues in 2016 of approximately USD 535 million. The lignin business constitutes close to 50% of the Group’s turnover with plants in 7 countries.