Danish global gas technology major MAKEEN Energy A/S and compatriot biogas major Nature Energy A/S have announced details of a joint venture to build and operate Denmark's first biogas liquefaction plant that will cater to both the shipping and road transport sectors. To be built in Frederikshavn, construction of the plant is expected to commence in late 2021 and the plant is expected to be operational in mid-2023.
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According to a statement, the deal is the result of “several years of hard work” by both Nature Energy and MAKEEN Energy, which have come together to form the joint-company Nordic Liquefaction (NORDLIQ) with the aim to build and operate Denmark’s first bioLNG plant.
Even though the Danish production of biogas is at a record high, there has not yet been any production of liquified biomethane in Denmark.
That will now change – Nature Energy is the largest producer of biogas in Denmark and building on MAKEEN Energy’s 70 years of global expertise in handling gas, the NORDLIQ plant will initially be able to produce 20 000 tonnes of bioLNG annually every year.
The new plant will be the first of its kind in Denmark when it is expected to be finished in mid-2023. This marks a whole new chapter for the green transition in this country because it will now be possible for ferries and trucks to tank up with a green fuel, in the form of liquified biogas, on Danish ground, said Ole Hvelplund, CEO of Nature Energy.
Demand-driven
The complete carbon dioxide (CO2) neutral fuel is already in heavy demand by shipping but has until now not been produced in Denmark, meaning that the current supply is unreliable and transportation times and costs high.
The NORDLIQ plant in Frederikshavn will change this, enabling shipping and transportation companies to supply vessels with a CO2-neutral fuel – a decisive milestone in the sustainable transformation of the transport and shipping sector in Denmark and Northern Europe, which up until now has relied heavily on fossil fuels.
Liquefied biogas is a cornerstone green fuel of the future. We’re very proud to lead this project in collaboration with Nature Energy and happy to be able to offer a responsible and effective solution for the transformation of the transport sector at this important time, said Bo Larsen, CCO of MAKEEN Energy.
Strategic multi-modal location
MAKEEN Energy already operates several LNG/bioLNG bunkering solutions, including a solution for Samsø Rederi, located in Hou.
Samsø Rederi has one ferry that operates on LNG and expects to transition to bioLNG when the plant in Frederikshavn is operational.
The ferry operator uses 3 000-4 000 tonnes of LNG annually which is imported from the Netherlands, and the company is looking forward to the possibility to fill its tanks with bioLNG.
A more sustainable ferry operation is a crucial focus area for Samsø Rederi, and soon we can take a step forward and use liquified biogas, produced in Denmark. This, we believe is interesting, and therefore we expect to convert to liquified biogas when the future LBG plant has been established, said Carsten Kruse, Ferry Director at Samsø Rederi.
The fuel distributor and retailer Q8 Denmark A/S (Q8) is delivering LNG to Samsø Rederi.
Gert Thomasen, Q8’s Head of Fleet and International Diesel Service (IDS) sees great potential for bioLNG produced in Denmark, which could, among other things, be used at the company’s coming LNG truck refueling station in Padborg – the first in Denmark.
We would like to make it easier for our customers to take part in the green transition, and therefore it will be a large step along the way towards a more sustainable heavy transport if we in the future can deliver liquified biogas that has been produced in Denmark. Because liquified biogas is a very relevant alternative to heavy transport, that cannot be electrified tomorrow. Simultaneously, the liquified biogas is also interesting for our marine customers, who are focused on alternatives to traditional fossil fuels, Gert Thomasen said.
As biomethane, aka renewable natural gas (RNG), and fossil natural gas are virtually chemically identical, the new plant in Frederikshavn will also be able to produce LNG, enabling the plant to cater completely to the needs of the customers.
Some 60 000 to 100 000 vessels pass Frederikshavn Harbour every year, and Mikkel Seedorff Sørensen, CEO of the Port of Frederikshavn, is delighted about the placement of NORDLIQ.
We are both happy and proud that NORDLIQ has decided to place its plant in Frederikshavn. It underlines our strategically important location between the shipping route into the Baltic Sea and the motorway network, and it is also contributing to strengthening Port of Frederikshavn’s position as a green center, Mikkel Seedorff Sørensen said.
One of the key buyers of the liquified gas will be Bunker One, who in collaboration with NORDLIQ will handle sales and marketing to the shipping industry.
We’re extremely proud to get the possibility to offer the maritime sector a Danish-produced product that we see a rapidly growing demand for – a demand that has never been higher, said Peter Zachariassen, CEO of Bunker One.
Core technology competence
The liquefaction process is one of MAKEEN Energy’s core competencies. By cooling natural gas or biomethane to -162 degrees C, the gas condenses to a liquid reducing its volume by 600 times, making the gas practical to handle and economically profitable as a bunkering solution for ships or as fuel for trucks.
Furthermore, implementing its zero-emission standard on the Frederikshavn plant ensures the complete prevention of harmful methane leaks.
Preventing methane leaks has been highlighted by the Intergovernmental Panel on Climate Change (IPCC) as a fast, efficient, and crucial way to reduce greenhouse gas (GHG) emissions. MAKEEN Energy says its zero-emission standard is applied to methane and biogas solutions offerings ensuring responsibly aligned with the future.
Meet growing bioLNG demand
BioLNG is gaining ground rapidly around the world as a fuel of the future and is already in steady use in countries like Sweden, Norway, and Germany.
The NORDLIQ plant will enable Denmark to join this trend, and the strategic placement of the plant in Frederikshavn will enable a reliable supply of liquefied gas to Scandinavia and northern Germany.
The bioLNG plant will be connected directly to the Danish gas grid, which is projected by the Danish Climate Ministry to consist entirely of RNG by 2040.
An option of expanding the initially planned production capacity of 20 000 tonnes per annum is part of the project – the plant will be able to scale up and produce up to 120 000 tonnes of liquefied gas every year at a later stage.
According to Nature Energy, the establishment of the bioLNG plant represents a “three-figure multi-million sum” investment in which Nature Energy will provide for two-thirds of the investment, and MAKEEN Energy the balance.
NORDLIQ expects that the construction of the bioLNG plant can begin later in 2021, once the construction permit has been granted and is anticipated to be finished by mid-2023.