Sweden-based Scandinavian Biogas is continuing to invest in bio-LNG production plants in order to cater to the increasing demand for the fuel.
The biogas producer said it would invest 300 million Swedish crowns ($32.3 million) to expand its plant in Glado Kvarn on Sodertorn, located south of Stockholm, to produce bio-LNG.
Once completed in the second half of 2023, the plant would produce 220 GWh of bio-LNG per year, making it the largest of its kind in northern Europe, according to the firm.
By comparison, 220 GWh corresponds to an energy volume of 22 million liters of diesel, it said.
This would make the plant even larger than the company’s facility in Norway’s Skogn, Scandinavian Biogas said.
Air Liquide to supply equipment
Scandinavian Biogas said it would cooperate on the project with Gasnatet Stockholm regarding gas infrastructure and with Stockholm Water and Waste at Henriksdal in Stockholm.
France’s industrial gas company Air Liquide would supply the equipment for biogas liquefaction, Scandinavian Biogas said, but it did not provide any additional information regarding the contract.
Moreover, the plant will liquefy both biogas from Glado Kvarn as well as from the production plant in Henriksdal in Stockholm.
The liquid gas from Henriksdal reaches Glado Kvarn via an expanded gas network.
“The advantage of making the gas liquid is that it then only uses one sixth as much tank volume compared to compressed gas and thus logistics and use become significantly more cost-effective, which makes it possible to sell the product throughout Europe,” the firm said.
Scandinavian Biogas said the Swedish Environmental Protection Agency through Klimatklivet has granted the company 135 million Swedish crowns ($14.5 million) in investment support for the bio-LNG project.
Matti Vikkula, CEO of Scandinavian Biogas said demand for bio-LNG, “is pointing strongly upwards.”
“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,” he said.
The firm has made large investments in liquefied biogas in recent years.
In December, Scandinavian Biogas said it had secured about $17 million from the government to build a bio-LNG plant in southern Sweden.
Scandinavian Biogas expects construction to start during the first half of 2022 while the facility could go online in 2024.
Also, Scandinavian Biogas has last year 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.