DONG Energy plans regarding constructing a second-generation bioethanol demonstration plant at Kalundborg is supported by a DKK 22.5 million grant from the Government's Programme for Energy research - EFP, which supports research and technological development in the energy area. DONG Energy has for the past ten years, been working on developing new bioethanol generation technologies based on straw and other types of biomass, and the technology is now ready to be researched in a large-scale environment. With the grant of EFP funds for the initial stage of the project DONG Energy will start the planning of the demonstration facility. “We are pleased to receive this energy research grant and will now start planning the facility. This plant holds great potential and we plan to commission it in 2009”, said DONG Energy CEO Anders Eldrup. Constructed close to the Asnæs power plant, the facility will generate annual volumes of 17,600 m3 of bioethanol, 24,000 tons of animal feed and 10,500 tons of solid bio fuel from 30,000 tons of straw and 30,000 tons of feed wheat. The intention is to sell the bioethanol to Statoil's refinery at Kalundborg as a petrol additive. The solid bio fuel will be transported to the Asnæs power plant and used to generate power and heat for the bioethanol plant, making the bioethanol process energy self-sufficient. Enzymes for the plant will be supplied by Danisco Genencor. “With this plant we expect to demonstrate that it is possible to convert residual biomass - waste - into ethanol and also show how many existing first-generation plants could successfully be combined with second-generation technology to exploit the residual biomass. The plant will thus demonstrate how to improve energy efficiency and reduce CO2 emissions. Our technology will facilitate an increased involvement by the transport sector in the solution”, said Anders Eldrup. For further information, please contact: Media Relations Ulrik Frøhlke +45 2484 9725 Investor Relations Steen Juul Jensen +45 3057 8882