Furetank, Eskilstuna Biogas sign LBG agreement in Sweden
Furetank became the first shipping company in Sweden and second in the world to bunker LBG in 2018. The company has developed a new series of vessels that are ‘best in class’ globally, according to the climate standards for shipping set by the International Maritime Organization.
Now, Furetank and Eskilstuna Biogas will develop a new biogas plant, producing around 5,000 tonnes of LBG annually, with Furetank agreeing to purchase at least 75% of the fuel for 10 years.
Gas will be extracted from manure and food waste from the municipalities of Eskilstuna and Strangnas and upgraded to a 100% waste-based, fossil-free and renewable LBG.
The biogas plant will be the largest environmental investment in Eskilstuna in 20 years and received around SEK 140 million (€13.1 million) in grants from the Swedish Environmental Protection Agency’s support for climate investments.
“In addition to these grants and public production support for biogas, a long-term agreement with a strong partner is required to make this big investment and achieve the large-scale biogas production that we are planning,” said Kaj Wågdahl, Eskilstuna Biogas’s chairman of the board.
“It is also very gratifying to find a partner who sees business opportunities in leading the way towards climate neutrality.”
Production is planned to start in the last quarter of 2023, likely well-timed with the launch of the EU Emissions Trading System for shipping.
Furetank’s CEO, Lars Höglund, commented: “It feels fantastic to access LBG in Sweden. With LBG produced in the right way, we can run our vessels completely without emitting CO2 or harmful particles.
“This is a strategic move. We developed the new efficient vessels, chose gas as a fuel and offset remaining emissions. Now, we move on to securing our own supply of LBG.”