Scandinavian Biogas invests in major bio-LNG plant expansion

Scandinavian Biogas will invest SEK 300 million (€28.6 million) in expanding its bio-LNG plant in Gladö Kvarn on Södertörn, south of Stockholm.

The expanded plant, expected to be complete in the second half of 2023, will become the largest of its kind in northern Europe, producing 220 GWh of bio-LNG annually. The former largest plant is Norwegian Skogn, which is also owned by Scandinavian Biogas. By comparison, 220 GWk corresponds to an energy volume of 22 million litres of diesel.

By liquefying the biogas, it then uses one-sixth of the tank volume compared to compressed gas and, therefore, logistics, making it more cost-effective.

Scandinavian Biogas is collaborating with Gasnätet Stockholm regarding gas infrastructure and with Stockholm Water and Waste at Henriksdal in Stockholm. The equipment for liquefying the biogas will be supplied by Air Liquide.

“Demand for bio-LNG is pointing strongly upwards,” said Matti Vikkula, CEO of Scandinavian Biogas. “Bio-LNG is increasingly used in heavy transport, but we believe that in the future there will also be a market in shipping and industry, and even in the production of fossil-free steel, biogas is expected to play an important role.

“In addition, the supply of inputs to produce biogas is increasing. Therefore, together with our partners, we have decided to invest in this expansion, which makes the facility at Gladö Kvarn the largest in northern Europe.”

The Swedish Environmental Protection Agency’s initiative Klimatklivet has granted investment support of SEK 135 million (€12.8 million) to the project since this provides a large reduction in CO₂ emissions by displacing fossil fuels.

Cecilia Hedqvist, CEO of Gasnätet Stockholm, commented: “Our ambition is for the gas network in Stockholm to grow as the city grows.

“On the one hand, access to food waste increases as Stockholmers become more numerous, and on the other hand, the need for sustainable energy sources becomes increasingly important in line with population growth.”