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Scandinavian Biogas gets $269m deal to deliver bio-LNG 

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Swedish biogas producer Scandinavian Biogas Fuels International AB said it has entered into an agreement valued at an initial 2.7 billion Swedish kronor ($269 million) to deliver bio-liquefied natural gas to Alternoil GmbH in Germany.

The company said that the agreement will see it deliver 8,000 metric tons in 2024, rising to 11,500 tonnes a year between 2025 and 2030, corresponding to more than 1 terawatt-hour of energy and includes an option to increase volumes up to 2 terawatt-hours corresponding to SEK4.7 billion.

The biogas will be used in filling-station operator Alternoil's Reefuel climate-neutral fuel for heavy good vehicles, Scandinavian Biogas said.

One terawatt-hour of bio-LNG equals 5,500 trucks driving 100,000 kilometres, the company added.

Scandinavian Biogas will supply bio-LNG from facilities in Sweden and Norway to Alternoil's filling stations, with the contracted volumes equal to around 25% of its planned capacity in 2025.

Biogas is carbon-dioxide-neutral and made from sewage and household, agricultural and industrial organic waste. Scandinavian Biogas has facilities in Sweden, Norway and South Korea.