St1 to enter biogas business with acquisition of E.ON Biofor in Sweden
St1 Sverige AB, the Swedish subsidiary of Finland-headed energy company St1 Nordic Oy, has announced that it has signed a Share Purchase Agreement with E.ON Energilösningar AB, a subsidiary of Germany-headed energy major E.ON to acquire 100 percent of the shares in E.ON Biofor Sverige AB – E.ON's Swedish biogas arm. The transaction, which is subject to the fulfillment of customary closing conditions and regulatory approval, is expected to be closed by the end of June 2021.
E.ON Biofor is a leading biogas player in Sweden with an estimated 30 percent market share in the transportation segment. The company has 35 biogas professionals and its operations are geographically located in the urban areas of southern Sweden as well as the capital Stockholm.
The company produces, imports, and exports biomethane aka renewable natural gas (RNG) and delivers it to customers through several sales channels.
E.ON Biofor has six biogas production and upgrading units, two of which are partly owned subsidiaries, Söderåsen Bioenergi AB and Falkenbergs Biogas AB.
We have identified strategic focus areas, where we can best achieve our goal in creating a sustainable carbon cycle. By investing in renewable energy and in the transition of the energy sector while ensuring the necessary cash flow, we are solving global energy challenges. Entering the biogas business is a concrete step in the consistent and long-term implementation of our growth strategy. We are focusing on investments in the production of renewable fuels from sustainable feedstocks, research and development in lignocellulose-based biofuels and geothermal heat, as well as the development of a synthetic fuel value chain, said Mika Wiljanen, Director of Sales Business Unit, St1 Nordic.