Gasum acquires Skövde Biogas
Finland-headed Gasum Oy has announced that it has acquired the entire share capital in the Swedish biogas producer Skövde Biogas AB from Torran Gas Holding AB on October 31, 2020. The transaction will allow Gasum to increase the volume of in-house produced biogas in its portfolio and expand the whole biogas value chain from feedstock sourcing to distribution and use.
Located in Skövde, southern Sweden, the newly acquired biogas plant has the potential to produce up to 40 GWh with the right feedstock. The Skövde plant, along with Gasum’s biogas plants in Lidköping and Vadsbo (jointly owned with Vadsbo Växtodling AB) and a planned one in Götene, will allow Gasum to boost its biogas production capacity in southern Sweden.
The acquisition, which includes the transfer of three employees, will also enable Gasum to optimize raw material sourcing and distribution between other Gasum biogas plants in the area.
The transaction is an integral part of Gasum’s strategy execution to accelerate growth for cleaner fuel solutions across the Nordics. We are excited about this acquisition, as it allows us to increase our volumes of in-house produced biogas and add greater value to our existing portfolio of biogas plants, said Gasum CEO Johanna Lamminen.
Industrial-scale circular economy
The addition of the Skövde plant will help to facilitate large-scale biogas production in the area. Potential suppliers with considerable volumes of excess raw material need a stable partner that can receive and process a wide range and large quantities of waste-based feedstocks.
Gasum can obtain these materials from locations that would otherwise have been considered beyond the bounds of Gasum’s network of local biogas plants. This will create significant synergies in feedstock sourcing. The Skövde plant will produce bio fertilizers, which will be distributed to surrounding farms.
This area in Sweden is highly valued in terms of agriculture and eco-farming. By producing renewable biogas, Gasum will be able to provide farmers in the vicinity with circular economy solutions on an industrial scale.
Biogas can be produced from different biodegradable waste streams and is a 100 percent renewable energy source. When upgraded to biomethane (aka renewable natural gas – RNG) and used as fuel in road transportation, it can, Gasum says, reduce carbon dioxide (CO2) emissions by up to 90 percent compared to fossil diesel.
Gasum now has 15 biogas plants in Finland and Sweden, making the company one of the largest producers of biogas in the Nordics. Gasum will make 4 TWh of biogas available in the Nordics by 2024 through its own facilities and partners.