Scandinavian Biogas will build a bio-LNG plant with local farmers in Sweden, in collaboration with local farmers.

Project development in Grimhult, outside Mönsterås, was started in 2016 by local farmers. The collaboration with Scandinavian Biogas began in 2018. Its location was decided based on the high density of zoos in the area.

The Swedish Environmental Protection Agency’s (EPA) program, Klimatklivet, has granted Scandinavian Biogas’ subsidiary, Mönsterås Biogasproduktion AB, SEK 154 million (EUR 14.9 million) investment support for the project. Mönsterås Biogasproduktion will, in collaboration with farmers, invest a total of just over SEK 500 million (EUR 48.6 million) in the plant.

It is expected that the plant will convert 300,000 tonnes of waste from local pigs and poultry into approximately 120 GWh of bio-LNG for use as fuel in trucks, ships or industry. The energy generated corresponds to 12 million liters of diesel. In addition to biogas, the plant will produce high-quality biofertilizer for use locally and for sale to other areas.

“This is a big step towards an investment decision,” says Michael Wallis Olausson, business area manager for Sweden at Scandinavian Biogas. “We have worked for a long time with the project and it is good to see that we are close to the final decisions. The Mönsterås farmers need the project to be developed in step with increased climate benefits. ”

Matti Vikkula, CEO of Scandinavian Biogas, commented: “The decision is very good for the environment, for agriculture and for the opportunity for locally produced food. It also shows that the Swedish Environmental Protection Agency and Region Kalmar believe in the project and our ability to implement it.

“For Scandinavian Biogas, this is an important step in the implementation of the Group’s growth strategy.”

Construction will begin in the first half of next year; production is scheduled to start in 2024.