Scandinavian Biogas secures multi-year Bio-LNG supply deal worth $27 million
Swedish biogas producer Scandinavian Biogas has signed a multi-year agreement for the supply of liquid biogas (Bio-LNG) to the transport sector in the Nordic region.
As disclosed, the deliveries of liquefied biogas under the agreement will begin shipping in 2023 and are intended from Scandinavian Biogas’ production facilities in Sweden.
Liquid biogas comes from organic waste that is converted into biofertilizer and biogas which is upgraded and liquefied.
“Our biogas is a 100% renewable Swedish product. It is a step towards making Sweden less dependent on fossil natural gas“, said Matti Vikkula, CEO of Scandinavian Biogas.
According to the company, the large volumes of Bio-LNG will contribute to a sustainable circularity for the transport sector.
The order is worth approximately SEK 300 million, which is said to be in line with Scandinavian Biogas’ communicated growth plans.
The Stockholm-headquartered company aims to play an important role in the expansion of fossil-free Bio-LNG for the transport sector in Sweden and the Nordic region. In 2021, the company delivered 366 GWh of energy.
In the long term, Scandinavian Biogas is targetting 3 TWh of an annual biogas production capacity in Europe by 2030, mainly Bio-LNG.
This year, the company also revealed its plans to invest $32 million in the expansion of the Gladö Kvarn plant to meet the demand for Bio-LNG.
Once the expansion is completed in the second half of 2023, the plant will produce 220 GWh of Bio-LNG per year, making it the largest of its kind in northern Europe.