In Sweden, gas infrastructure and distribution company Nordion Energi AB and Finland-headed energy company St1, have signed an agreement to supply more biomethane aka renewable natural gas (RNG) to the transport and industrial sectors.
According to Nordion Energi, liquefied biomethane (bioLNG) is expected to form a larger part of the fuel mix to replace fossil fuels in shipping, heavy road transport, and industry.
The company is planning a new facility in the Port of Gothenburg where biomethane will be liquefied and transported to customers in different parts of the country.
St1 has agreed to purchase a share of the capacity as part of the cooperation.
This is a great opportunity to reach out with biogas to ships, road transport, and also industries that are not directly connected to the gas grid. For us, it is important to bring St1 — a player that invests heavily in biogas and is serious about the energy transition. Through the collaboration, we are taking a new step towards enabling more people to gain access to biogas, said Carolina Wistén, Marketing Manager at Nordion Energi.
250 GWh capacity
The plant in the Port of Gothenburg will be the first of its kind to be directly connected to the West Swedish gas network.
After liquefaction, the liquefied biomethane will be temporarily stored in a tank before onward delivery to the customer, either by loading onto trailers or directly bunkered as ship fuel via a pipeline.
The plant will be able to liquefy 250 GWh of biomethane annually. The capacity not used by St1 will be available to other actors who need to restructure their activities.
Investment decisions for the facility are scheduled to be taken before the end of the year.
Biogas is an important part of our energy transition, and we are investing heavily in the expansion of both the production and distribution of liquid biogas. Collaborations with players such as Nordion Energi give us the opportunity to expand our production and sales of biogas and are an important enabler for supplying, among other things, the transport sector with locally produced bioLNG, said Matti Oksanen, Director of the Gas business at St1.
