Sweden-headed biogas project developer and fuel producer Scandinavian Biogas Fuels International AB (SBF) has announced that it has been awarded SEK 154 million (≈ EUR 14.3 million) in investment support for the construction of a bioLNG plant in southern Sweden.
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The Swedish Environmental Protection Agency’s “ClimateStep” (Klimatklivet) program Klimatklivet has awarded the grant to Scandinavian Biogas to be used in a new investment project to produce liquefied biomethane (bioLNG) in Skåne’s Fagerhult in Örkelljunga municipality, about 500 kilometers south of Stockholm.
The biogas will be produced by utilizing manure from dairy and pig farmers in the area. In addition to manure, other residual products from agriculture and food production will also be used.
The biogas will then be upgraded to biomethane aka renewable natural gas (RNG) and liquefied (bioLNG). The annual capacity is estimated at 130 GWh or the equivalent energy content of 13 million liters of diesel.
Aligned with growth plans
Given that an investment decision is made before the end of 2023, production is expected to begin in mid-2025 and contribute to estimated profitability in 2026.
The annual carbon dioxide (CO2) reduction is estimated to be around 53 000 tonnes. The plant will also produce 200 000 tonnes of high-quality biofertilizer for the region’s agriculture.
It feels great that we can now move forward with this important project said Michael Wallis Olausson, Director for Group Growth at Scandinavian Biogas Group.
The investment is an important milestone in the company´s long-term growth strategy where the target is set on 3 TWh by 2030.
The facility is planned to be built on municipal industrial land just east of Skånes Fagerhult in Örkelljunga municipality.
The municipality and Scandinavian Biogas have jointly developed a plan for a possible localization.
The plant will produce a large amount of bioLNG, which is necessary for the green transition, but will also be an important part of the development of the region’s agriculture. Örkelljunga municipality’s pragmatic attitude has been an important piece of the puzzle to get this in place, Michael Wallis Olausson said.
The project will now proceed with the customary preparations, including planning permission and environmental permitting, for a Final Investment Decision (FID).
This type of industry, where you take care of local manure and at the same time reduce methane slipping into the atmosphere is very positive. Örkelljunga is strategically located in the middle of a very productive farming area, with many hard-working and innovative farmers. The Biogas plant is very important as a step to reaching sustainable farming and at the same time producing green fuel. We like to extend Scandinavian Biogas a very welcome to Skånes Fagerhult, said Christian Larsson, Mayor of Örkelljunga.
