Scandinavian Biogas gets $17 million boost to build Swedish bio-LNG plant

Sweden-based Scandinavian Biogas said it has secured about $17 million from the government to build a bio-LNG plant in southern Sweden.

The Swedish Environmental Protection Agency through Klimatklivet has granted the company’s unit Monsteras Biogasproduktion 154 million Swedish crowns ($17 million) in investment support for the bio-LNG project.

According to Scandinavian Biogas, its unit cooperates with local farmers in Grimhult near Monsteras, about 370 kilometers south of Stockholm, to build a bio-LNG facility worth just over 500 million Swedish crowns ($55.2 million).

The firm has already received environmental permits for this project.

Production could start in 2024

Scandinavian Biogas expects construction to start during the first half of 2022 while the facility could go online in 2024.

Moreover, the facility would have a capacity to convert 300,000 tonnes of dung from local pigs, nut and poultry into about 120 GWh of liquid biogas or bio-LNG, Scandinavian Biogas said.

This bio-LNG would end as fuel for trucks and ships but also for the industry.

For comparison, 120 GWh corresponds to an amount of energy of 12 million liters of diesel, the firm said.

In addition to biogas, the facility would produce high-quality biofertilizer for both local use and for sale to other areas, it said.

Close to FID

Michael Wallis Olausson, business area executive Sweden at Scandinavian Biogas, said this financial boost “is a big step towards an investment decision” for the bio-LNG project.

“We have worked for a long time on the project, and it is good to see that we are close to the final decision,” he said.

The firm has made large investments in liquefied biogas in recent years. A unit of the firm has earlier this year awarded a contract to Wartsila to build what it says is the world’s largest bio-LNG production plant.

Also, Scandinavian Biogas has recently extended its agreement with Dutch LNG supplier Rolande for deliveries of bio-LNG.

The supplies are for several years, totaling about 90 GWh of bio-LNG per year.

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