Finland-based Gasum said it would supply LNG and liquefied biogas (LBG) to compatriot sugar company Sucros as part of a deal revealed on Tuesday.
Sucros, a unit of Germany’s sugar producer Nordzucker, is looking to slash emissions and has decided to switch from using heavy fuel oil and coal to LNG at its existing three boilers of the sugar beet factory in Sakyla.
Gasum said in a statement the LNG and LBG supply deal would start during the autumn of 2022 when it expects to complete a new facility that would receive the fuel.
Built by Gasum, the new facility will have LNG storage tanks, a vaporizer, and industrial automation. It will receive LNG by trailers from Gasum’s terminal in Pori.
Gasum did not provide information regarding the quantities of LNG or the duration of the contract.
Also, the LNG supplier said it already receives wastewater sludge and biosludge as raw materials for biogas production from Sucros subsidiary Suomen Sokeri.
The biogas produced can then be used in industrial processes, for heat and power production in industry and homes, or as fuel for the maritime or road transport segments.
Gasum’s plants in Turku, Lohja and Huittinen respectively will receive almost 3,000 tonnes of biogas material a year.
This would be a “major boost” to both low-emission energy production in Finland and to implementing the circular economy, it said.