Scandinavian Biogas AB, a subsidiary of Scandinavian Biogas Fuels International AB one of the Nordic region's largest private producers of vehicle grade biomethane (aka renewable natural gas – RNG) has announced that it has received SEK 135 million (≈ EUR 13.34 million) in investment grants from the Swedish Environmental Protection Agency (Naturvårdsverket) Climate Step (Klimatklivet) program to increase liquefied biomethane (aka LBG or bioLNG) production capacity in Stockholm.
Via two subsidiaries, Scandinavian Biogas operates biogas plants with upgrading to biomethane (RNG) and compressed for compressed biomethane (aka CBG or bioCNG) in the Stockholm region. The awarded Climate Step grants relate to projects to expand the production capacity to produce liquefied biomethane (aka LBG or bioLNG) at the companies’ biogas plants in the Stockholm region.
The investment grant shows that Klimatklivet believes in our projects and that we have the financial strength to complete them. This is fully in line with business area Sweden’s transition to production of liquid biogas. We are seeing a significant increase in demand for liquid biogas from both national and European customers, said Michael Wallis Olausson, Director of Business Area Sweden.
The projects are scheduled to begin in 2021. In total, this will enable an annual production of 235 GWh of LBG in Stockholm which equates to about 23.5 million litres of diesel.
It is primarily the transportation sector that is choosing biogas as an opportunity to meet the increased demands for a smaller carbon footprint. Across Europe, a network of bioLNG filling stations is now being built to meet the requirements of heavy-duty transport.
In Sweden, the number of filling stations for biogas has increased by over 200 percent since 2018. LBG requires only one-sixth of the tank volume compared to that of compressed biomethane (aka CBG or bioCNG), meaning that transportation of liquefied gas to refuelling stations has become a very interesting option.
The projects in Stockholm are an important part of the company’s growth and adaptation to a growing market with new customer segments. Klimatklivets contributions are important steps towards the Group’s 2024 targets of a production capacity of 700 GWh and an EBITDA margin of at least 30 percent, said Matti Vikkula, CEO Scandinavian Biogas Group.
