In the long term, Sweden's energy supply must be base on an ecologically sustainable production of electricity. The supply of electricity from renewable energy sources must be increased.
The market for alternative motor fuels in Sweden is still limited. There is considerable potential for developing the use of motor fuels based on renewable materials. Ethanol, Methanol, biothers, biogas and methylated fatty acid esters such as rape methyl ester (RME) can replace petrol and diesel fuel in various ways.
The Agency is financing fundamental research into the production and use of alternative motor fuels, with the aim of developing existing and new technology. Production and distribution cost of possible fuels must be reduced, and the yield of production processes must be increased in order to improve competitiveness.
The Swedish Energy Agency supports research and development of new knowledge associated with the supply, conversion, distribution and use of energy. Grants are also given for pilot and demonstration installations for testing new technology.
The Agency finances five competence centres and about 40 research and development programmes in various scientific disciplines. This work is carried out in close conjunction with the institutes of technology and with industry, as it is an objective that the results of research should be put to practical and commercial use.
The Agency provides support for both fundamental and applied research in areas such as fuel production from forestry and agriculture, as well as the production, distribution and use of electricity and heat.
The programme budget is SEK 56 million during 2003-2006.