Makeen Energy said it has signed a deal with biogas supplier Nature Energy to build and operate the first biogas liquefaction plant in Denmark.
The liquefied biogas (LBG) plant in Frederikshavn would start operations in mid-2023, while construction would begin by the end of this year, according to Makeen.
It would enable a local supply of CO2-neutral fuel for the heavy transport and shipping sector, the Danish firm said.
The new deal is the result of several years of work by the duo, which have come together to form the joint company named Nordliq (Nordic Liquefaction) with the aim to build and operate the first Danish LBG plant.
Initially, the plant will produce about 20,000 tonnes of LBG every year.
In addition, Makeen also has plans to boost the production capacity up to 120,000 tonnes of liquefied gas every year at a later stage.
LBG and LNG
Makeen says LBG is already in heavy demand by the shipping industry, but Denmark has no facilities to produce the fuel.
“The Nordliq plant in Frederikshavn will change this, enabling shipping and transportation companies to supply vessels with completely CO2-neutral fuel – a decisive milestone in the sustainable transformation of the transport and shipping sector in Denmark and Northern Europe,” it said.
Makeen already operates several LNG/LBG bunkering solutions, including a solution for the Samsoe ferry, located in Hou, and a coming refueling station for trucks in Padborg, it said.
The Samsoe ferry would transition from LNG to LBG when the plant in Frederikshavn is operational.
“And as biogas and natural gas are virtually chemically identical, the new plant in Frederikshavn will also be able to produce LNG, enabling the plant to cater completely to the needs of the customers,” Makeen said.
The firm added that the plant would be connected directly to the Danish gas grid, which is projected by the Danish Climate Ministry to consist entirely of biogas by 2040.