Scandinavian Biogas investing NOK 70 million in Skogn II LBG expansion
Sweden-headed biogas producer Scandinavian Biogas Fuels International AB has announced that it is investing NOK 170 million (≈ EUR 17.1 million) in the expansion of liquefied biomethane (aka LBG or bioLNG) production at its Skogn production facility outside Trondheim in Norway. All permits are in place as well as an Enova investment grant of NOK 48.6 million (≈ EUR 4.88 million).
Scandinavian Biogas Fuels International AB has decided to invest approximately NOK 170 million (≈ EUR 17.1 million) in LBG production expansion at the Skogn facility. On-site, the company already has the world’s largest LBG plant that was inaugurated in 2018.
The new plant will be operation-ready in the third quarter of 2022 and produce 35 GWh per annum of LBG. The Skogn facility will, among other things, supply the cruise company Hurtigruten with LBG as fuel for their fleet of ships.
The operations at Skogn have been very appreciated, and the customers are queuing up. So, it feels very inspiring to be able to announce that we are now expanding the capacity of liquid biogas. The customers are primarily customers who invest in green shipping and green road transport, said Håvard Wollan, Business Area Manager Norway.
Suppliers selected and off-takes in place
According to a statement, all mandatory permits are in place for the investment project dubbed Skogn II as well as an approved investment grant of NOK 48.6 million (≈ EUR 4.88 million) from Enova a government agency under the Norwegian Ministry of Climate and Environment.
Agreements with technology suppliers for the new facility are ready, including the four main contractors ABB for control and automation systems, Andion for the process plant, Grande for groundworks, and Wärtsilä for the liquefaction plant.
Several offtake agreements with customers, mainly in the Norwegian shipping industry are in place as are agreements with suppliers of waste feedstock.
The expansion of Skogn is an important step for us. Earlier this year, we also received a grant from Klimatklivet by the Swedish government for the expansion of the facilities in the Stockholm area to liquid biogas. Biogas is today the purest energy technology because it takes care of waste and converts it into energy. In addition, it can be applied to the internal combustion engines on the market without major modifications, said Matti Vikkula, CEO of the Scandinavian Biogas Group.