Sweden-based Scandinavian Biogas said it had signed a multi-year deal to supply bio-LNG to the transport sector in Sweden and the Nordic region.
The agreement runs over several years and deliveries of liquefied biogas or bio-LNG would begin in 2023, according to a statement by Scandinavian Biogas.
Scandinavian Biogas said the deal is worth about 300 million Swedish crowns ($28 million) at today’s market prices.
The firm said it would provide bio-LNG from its production facilities in Sweden, but it did not provide any additional information regarding the deal.
“Our biogas is a 100 percent renewable Swedish product. It is a step towards making Sweden less dependent on fossil natural gas,” Matti Vikkula, CEO Scandinavian Biogas, said in the statement.
Scandinavian Biogas has been very active this year developing its bio-LNG business.
The firm set a long-term target to reach an annual production capacity of 3 TWh of biogas, mainly bio-LNG, in Europe by 2030.
In June, the firm signed a large bio-LNG deal with German fueling station operator Alternoil.
During the same month, it secured about $15 million from the government to build a bio-LNG plant in southern Sweden.
Also, Wartsila said in August that the Skogn bio-LNG plant in Norway had doubled liquefaction capacity following the launch of the second train.
The facility operated by Norway-based Biokraft, a unit of Scandinavian Biogas, is the largest plant owned by Scandinavian Biogas.