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NGF Nature Energy and BioenergiSyd ink DKK 500 million biogas project deal

NGF Nature Energy A/S and BioenergySyd have signed a cooperation agreement to establish two biogas plants in the municipality of Sønderborg, Denmark. Representing an estimated DKK 500 million (≈ EUR 67.23 million) worth of investment, the two plants will create 50 new jobs and reduce carbon dioxide (CO2) emissions thereby becoming an important step in the municipality's ambition to become climate neutral by 2029.

Circulating the biogas agreement for signing: (from left to right) Ole Hvelplund, Nature Energy, Peter Gæmelke, Nature Energy Biogas, Erik Lauritzen, Mayor of Sønderborg, Andreas Bonde, Chairman, BiogenergiSyd and Martin Lambert Pedersen, Vice-Chairman, BioenergiSyd (photo courtesy Nature Energy).

Denmark’s largest producer of green gas, NGF Nature Energy A/S, and BioenergiSyd, an association of 75 farmers established around LandboSyd, announced August 23 a joint intention to establish two biogas plants in the Danish municipality of Sønderborg.

According to a statement, the two biogas plants will create 50 permanent jobs and significantly reduce the fossil carbon dioxide (CO2) emissions of the municipality while enable farming to become more sustainable and efficient.

We are pleased that with today’s agreement we can really move on with the establishment of biogas plants in Sønderborg. The two plants will be good for the environment and provide a fertilizer product that can improve the yield by up to 15 percent. The two biogas plants will, therefore, be a benefit to both the environment and the bottom line, said Andreas Bonde, Chairman of BioenergiSyd in a statement.

Over the years, Denmark has invested an estimated DKK 55 billion (≈ EUR 7.4 billion) into a nation-wide gas grid infrastructure and over 400 000 Danish homes and business use gas for heating and industrial processes.

NGF Nature Energy has the ambition to make the gas green, and today it operates four large-scale biogas plants and has another three currently under construction. The two new plants in Sønderborg will contribute further to the green transformation of the fossil gas sector.

We are in the process of transforming the gas sector in Denmark so that the gas in the future will be green. We are therefore building biogas plants throughout Denmark and have plans to invest more than DKK 3 billion (≈ EUR 403.35 million). The two plants in Sønderborg are part of the plan and these plants will produce enough biogas to replace natural gas for approximately 25 000 homes and save the community about 100 000 tonnes of CO2, said Ole Hvelplund, NGF Nature Energy.

Important for municipal climate neutrality goal

The municipality of Sønderborg has the ambition to become climate neutral by 2029. The plans for two new biogas plants, which both reduce the municipality’s CO2 emissions and create local jobs, are met with enthusiasm by the Mayor of Sønderborg, Erik Lauritzen.

Biogas production is an obvious opportunity to reach our goal of becoming CO2 neutral by 2029, and thus I am delighted that two strong parties will now invest DKK 500 million (≈ EUR 67.23 million) in Sønderborg municipality. With this investment, we get efficient waste management and we provide a better fertilizer product for farmers who get a degassed and less odorous slurry back. The two plants will be good both for our agriculture and for Sønderborg’s CO2 accounts – and there are also good green jobs in such an installation, said Erik Lauritzen.

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