St1 Biokraft, a leading Nordic biomethane player, has secured a €260 million corporate financing structure from leading European financial institutions. The transaction strengthens the company’s financial flexibility and supports execution of its growth strategy in the Nordics and Northern Europe.
The financing supports continued expansion of St1 Biokraft’s end-to-end business model, covering the full value chain from feedstock sourcing and production to logistics, distribution, and sales.
This model positions the company to meet growing demand for biomethane – aka renewable natural gas (RNG) – in heavy transport, maritime, and industrial applications.
According to St1 Biokraft, the transaction “underlines both confidence in St1 Biokraft’s platform and growth pipeline and the strength of the company’s relationships with its new core bank group.”
This financing is a clear validation of St1 Biokraft’s strategy and business model and marks an important milestone in our growth journey. We would like to thank the participating banks for their strong support, as well as our project team for their outstanding efforts in delivering this financing. Biomethane is increasingly recognized as a scalable and investable asset class, and we have built a platform with industrial depth across the full biomethane value chain and demonstrated that our end-to-end model works, said Miika Johansson, CEO of St1 Biokraft.
Finance greenfield production expansion
St1 Biokraft has communicated ambitious targets of 3 TWh of own biomethane production and 6 TWh of sales and distribution by 2030, supported by planned investments of €1 billion in biogas production, upgrading, and distribution networks in the Nordics.
The company currently has 12 biogas production and upgrading facilities in Sweden and Norway, as well as a growing Nordic distribution network with over 60 public filling stations and dedicated bus refuelling depots.
The majority of the proceeds will be used to finance new greenfield biomethane production assets and the continued roll-out of the company’s liquefied biomethane (bioLNG) filling station network.
The €260 million financing package is provided by an eight-bank syndicate comprising ABN Amro, DNB, ING, Nordea, OP Bank, Rabobank, Sparebank1, and Swedbank.
ING acted as the sole financial advisor, while all participating banks served as arrangers. ING also acted as a facility agent and a security agent.
Together with St1 Biokraft and its shareholders, HitecVision and St1 Group, the banking group helped structure a financing solution aligned with the company’s growth strategy.
The transaction is a positive signal for the biomethane sector, showing that large-scale platforms with strong operational capabilities and integrated routes to market are gaining traction with lenders and investors across Europe.
