Perstorp’s investment in green chemistry wins EU Innovation Fund support

The European Union Innovation Fund has selected Project Air, a unique sustainable methanol production facility in Stenungsund, Sweden, as one of 17 large-scale green technology projects to receive over $1.8 billion. euros. Project Air, which is a collaboration between Perstorp, Fortum and Uniper, has requested €97 million and the total investment is expected to be over €230 million.

Project Air is a game-changer for the chemical industry, moving from fossil feedstocks to recycled and bio-based feedstocks, enabling sustainable chemicals for a wide variety of industries and end products. At full capacity, it will reduce global CO2 emissions by almost 500,000 tonnes from current levels, which is 1% of current emissions in Sweden.

“The Innovation Fund’s decision shows that Project Air is an important future climate investment. This is a critical decision for Perstorp, our customers and partners, as it creates increased availability of sustainable chemicals throughout our value chains. The chemical industry needs carbon, but it needs to be non-fossil carbon and it needs to be placed in circular flows so that we get rid of CO2 in the atmosphere,” said the President and CEO. de Perstorp, Jan Secher. “I am proud to lead a company that has the ability to drive such an industry-leading transformation project.”

Project Air is based on the innovative use of existing technology in a large scale industrial application. To produce sustainable methanol, the facility uses significant amounts of CO2 and other waste streams recovered from Perstorp’s ongoing operations, biogas from new dedicated plants as well as hydrogen from a new large plant of electrolysis. In addition, the existing wastewater treatment will be used as feed water for electrolysis. All electrical energy for the combined project will be renewable. The ambition is to start full-scale production by 2026.

Project Air will be built at Perstorp’s existing facilities in Stenungsund, strengthening the regional chemical industry cluster, Hållbar Kemi 2030. Project Air’s sustainable methanol will be used to manufacture chemicals which, in turn, are used in a variety of applications in multiple industries and businesses. It’s ultimately about making thousands of finished products more sustainable, from mobile screens, paints to fabrics in our clothing. Due to the upstream positioning of the chemical industry in the value chain, the project has the potential to make many other production processes and industries more sustainable. Project Air scavenges carbon atoms that would otherwise remain in the Earth’s atmosphere.

Project Air is one of 17 projects awarded for a total of 1.8 billion euros by the Innovation Fund. The consortium behind Project Air is now entering the process of preparing the grant agreement, which is due to be completed in the fourth quarter. Project design and installation planning are conducted in parallel.