Finland’s e-methane developer Nordic Ren-Gas and Swiss group avanca have signed a long-term offtake agreement valued at 1 billion euros ($1.14 billion) for e-methane produced at Ren-Gas’s Tampere facility. The fuel will be distributed to heavy-duty truck operators via Alternoil’s LNG distribution network in Germany.
According to a joint statement on Friday, the deal is one of the largest commercial partnerships of its kind in Europe and represents a “concrete step in building a fully integrated, cross-border renewable e-methane supply chain.”
The statement did not provide further details regarding the agreement.
The agreement combines Ren-Gas’s Finnish e-methane production platform with avanca’s/Alternoil’s established LNG distribution network in Europe.
avanca Energy’s units include avanca Renewables and Alternoil.
The renewables unit manages the group’s renewable fuel portfolio, sourcing bio-LNG and e-methane and accompanying upstream production partnerships across Europe, while Alternoil operates Germany’s largest LNG distribution network, with 55 fueling stations and over 120 dispensing points.
Moreover, avanca will distribute the fuel produced at the Tampere facility through existing gas infrastructure directly to heavy-duty truck operators — requiring no modifications to vehicles or fueling stations, the partners said.
Ren-Gas produces e-methane by combining hydrogen with captured carbon dioxide.
“Chemically equivalent to biomethane, it functions as a drop-in fuel for existing gas and LNG infrastructure, making it one of the most immediately and cost-effective deployable decarbonization options available for long-haul freight today,” the statement said.