Scandinavian Biogas sets new bio-LNG production target

Sweden-based Scandinavian Biogas has revealed a new bio-LNG production target as it continues to work on new projects.

Given the “very attractive” industrial outlook for biogas, the firm said it has decided as a long-term target to reach an annual production capacity of 3 TWh of biogas, mainly bio-LNG, in Europe by 2030.

Based on the earlier communicated goal by 2024 to reach at least 700 GWh annual capacity, plans remain unchanged, Scandinavian Biogas said.

The targeted growth would be based on organic development as well as acquisitions, it said.

In the first phase, the firm plans to make investments in Northern and Central Europe. In order to enhance growth, Scandinavian Biogas formed a dedicated group level function in February to focus on growth opportunities.

“The current opportunity pipeline with potential growth projects and opportunities is very well aligned with the new 2030 production target to reach annual 3 TWh biogas and bio-LNG production,” the firm said.

Based on NGVA Europe data, the market for heavy transportation vehicles would grow from 2.800 to 280.000 vehicles in 2020s, with customers demanding substantial share of energy to come from bio-LNG, Scandinavian Biogas said.

For the same period, biogas and bio-LNG production would grow in Europe from 191 TWh to 467 TWh, it said.

Several bio-LNG moves

Scandinavian Biogas revealed several bio-LNG moves during the last two years.

This includes the recent investment to expand its plant in Glado Kvarn on Sodertorn, located south of Stockholm.

The new project would make the plant even larger than the company’s facility in Norway’s Skogn, Scandinavian Biogas said.

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.

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