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Chemrec AB Announces $10 Million in Series A Funding Chemrec AB ­ Swedish Black Liquor Gasification Technology Company gains financial strength for accelerated commercialization of bio-refineries. Stockholm, Sweden ­ January 22, 2007 ­ Chemrec AB, a leading developer of black liquor gasification technology, announced today that it has secured $10 million in Series A financing from AB Volvo Technology Transfer and VantagePoint Venture Partners. The funding will be used to accelerate the commercialization of their technology, and to grow its engineering and business staff. The round was led by VantagePoint Venture Partners. Bernie Bulkin, Venture Partner at VantagePoint and former Chief Scientist at BP was named to the Board of Directors along with Anders Brännström, Chief Executive Officer, Volvo Technology Transfer. Chemrec's gasification technology converts black liquor, a major by-product of pulp mills and the world's largest quantity of concentrated biomass, into a significant energy source thereby turning pulp mills into highly efficient bio-refineries for co-production of pulp and renewable fuels or electricity. "With continuing high energy prices for both liquid fuels and electricity, Chemrec's technology is well positioned for rapid adoption. Chemrec could dramatically change the profitability of pulp mills and enable them to participate in the exploding alternative fuels industry," said Bernie Bulkin, Venture Partner, VantagePoint Venture Partners. Pulp mills can with Chemrec's technology produce several second-generation renewable fuels, for example dimethyl ether or DME, methanol, synthetic diesel or hydrogen. There is enough black liquor to produce up to 30% of all motor fuel in Sweden, 50% in Finland, 10% in France and 5% in the United States. "This investment is in line with our strategy to create value for both customers and shareholders and at the same time be a leader in addressing environmental concerns," said Anders Brännström, CEO of Volvo Technology Transfer. "Volvo is developing a heavy truck engine for all biomass based fuels." Jonas Rudberg, Managing Director of Chemrec is pleased to add new investment partners who, in addition to funding, contribute global experience, significant technology expertise, and a strong commitment to bringing renewable energy technology to market: "With our new base of owners, Chemrec gains the financial strength needed to accelerate the market introduction of the technology. Chemrec has developed a superior technology and now obtains the resources required to be a very strong partner to the pulp industry across the whole spectrum from technology to development of projects to implementation of plants." A development plant is in operation in Piteå, Sweden and a commercial plant based on earlier-generation technology is in commercial operation in North Carolina, USA. In addition to Chemrec's process development in Piteå, Chemrec will continue its close partnership with industry, public bodies and universities in order to develop world-class research and strengthen the network of stakeholders around this key technology.

About Chemrec AB Chemrec AB is a Swedish based company dedicated to the technical development and commercialization of energy and chemicals recovery systems for pulp mills based on black liquor gasification. For more information see www.chemrec.se About AB Volvo Technology Transfer Volvo Technology Transfer (VTT) www.volvo.com/venturetech is AB Volvo's corporate venture capital company. VTT creates value for Volvo shareholders and the organisation by investing in new technologies and emerging business opportunities with relevance to Volvo. About VantagePoint Venture Partners VantagePoint Venture Partners is among the most active and successful venture firms in the world with more than $4.0 billion of capital under management. The Firm invests exclusively in technology driven companies and is organized around deep expertise and resources in key areas of interest: CleanTech, Healthcare, Internet and Digital Media, and Mobile and Wireless technologies. VantagePoint is a multi-stage investor, investing in high growth businesses at all stages of development. The Firm believes in applying a hands-on and team oriented approach to companies of lasting value. The Firm supports each of its portfolio companies, including CleanTech investments in Miasolé, Tesla Motors, and solarcentury with the resources of a dedicated team of VantagePoint professionals able to contribute a blend of company building, technology, operations, marketing, and corporate finance expertise. For more information: www.vpvp.com. For additional information, please contact: Jonas Rudberg; Chemrec AB, Tele. +46 8-440 40 56 Anders Brännström, AB Volvo Technology Transfer, Tele: +46 31-66 91 60 Bernie Bulkin, Vantage Point Venture Partners, Tele. +44-208-201 89 16 Max Jönsson, Nykomb Synergetics, Tele: +46 73-628 58 40

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Microsoft Word - 070108 Chemrec Press Release US Final Bernie Version.doc