Press Release: State aid: Commission approves Swedish €55 million aid for Domsjö R&D project

The European Commission has authorised under EU state aid rules a support of SEK 500 million (about €54.6 million) that Sweden intends to grant to the Domsjö research and development (R&D) project. Domsjö Fabriker AB, a Swedish pulp producer, will develop a demonstration plant for the production of bio-methanol and other biofuels from pulp mill residue material. If successful, these second-generation biofuels will replace traditional fuel in the transport sector, thereby limiting Europe's dependency on fossil fuel and reducing carbon dioxide emissions. The Commission concluded that the project is compatible with the EU Framework on State aid for research, development and innovation (R&D&I). In particular, the aid aims at tackling a market failure and generates positive effects for the EU, notably increased research activities and environmental protection.