Sep 29, 2008. /Lesprom.com/. CHOREN Industries and Norske Skog have entered into an agreement for collaboration in the evaluation of second generation biofuel production in Norway. Norske Skog is one of the world's largest producers of newsprint and magazine paper and has the competence and systems required to handle large amounts of woody biomass for industrial production. The production of second generation biofuel based on woody biomass has been identified as a potential new business area. The recently formed biofuel-subsidiary Xynergo has the objective to evaluate and potentially establish 1-2 full-scale plants for production of BTL in Norway. The cooperation between CHOREN and Norske Skog means a strong alliance with competence over the entire value chain - from forestry feedstock input to synthetic biofuel output. "I have high expectations for the business opportunities inherent in production of BTL. The cooperation with CHOREN will allow Xynergo to speed up progress in the development of these plans," says Norske Skog's CEO Christian Rynning-Tønnesen. CHOREN is developing plans for a final investment decision to be taken in 2009 on the world's first full-scale plant for production of BTL in Schwedt, Germany, with a targeted production of 270 million litres of synthetic biofuel annually.