Solvay ceases U.S. investments in Solvay Biomass Energy
Brussels, July 12th, 2016 --- Solvay has decided to cease investments in the production of torrefied biomass through its Solvay Biomass Energy (SBE) joint venture with U.S. company New Biomass Holding as market developments have been lagging behind expectations and are lacking visibility.
Since its creation in 2014, SBE has been focusing on the development of torrefied wood pellets and on their production on an industrial scale to make this innovative and renewable energy technology commercially available as a complement or substitute to coal used in power plants.
SBE succeeded to produce high quality torrefied pellets, but lasting unfavorable economic conditions and significantly lower energy prices meant it could not reach its commercial objective. Under current low oil prices the technology cannot be viable and the lack of medium term market visibility led Solvay to stop investments in the joint venture after two years of financial support.
Solvay remains committed to allocating resources for the development of innovative solutions that reduce its own greenhouse gas emissions and those of its customers, contributing in the combat against climate change.