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Mönsterås Biogasproduktion bioLNG project secures SEK 154 million grant

In Sweden, Mönsterås Biogasproduktion AB, a subsidiary of Scandinavian Biogas AB has been awarded a SEK 154 million (≈ EUR 15 million) investment grant from the Swedish Environmental Protection Agency's "Klimatklivet" (ClimateStep) program for its planned bioLNG production facility in Mönsterås.

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Mönsterås Biogasproduktion AB has been awarded a SEK 154 million (≈ EUR 15 million) investment grant from the Swedish Environmental Protection Agency’s “Klimatklivet” (ClimateStep) program for its planned bioLNG production facility in Mönsterås, Sweden.

The biogas project in Grimhult, Mönsterås was originally intiated in 2016 by local farmers. The cooperation with Scandinavian Biogas began in 2018. Subject to securing final investment decisions from stakeholders, construction start is to commence during the first half of 2022, and production is planned to begin in 2024.

Strategic location

The biogas plant is to be located in Grimhult taking advantage of the high livestock density in the area. At full capacity, the facility will convert 300 000 tonnes per annum of local livestock manure into about 120 GWh of liquefied biomethane (bioLNG) that can be used as a transportation fuel for heavy-duty vehicles (HDVs) or shipping.

As a comparison, 120 GWh bioLNG corresponds to about 12 million liters of diesel in energy terms.

In addition to biogas, the facility will produce high-quality biofertilizer for both local uses and for sale to other areas. This means that local farmers can develop their activities within the framework of their environmental permits.

This is a big step towards an investment decision. We have worked for a long time on the project, and it is good to see that we are close to the final decisions. Farmers in Mönsterås need the project to develop in line with increased climate benefit, commented Michael Wallis Olausson, Business Area Executive Sweden at Scandinavian Biogas.

The Swedish Environmental Protection Agency’s decision to support the project is based on the requirement that the funds invested should provide the greatest possible greenhouse gas (GHG) emission reduction per invested SEK. Manure-derived biogas achieves a high level of GHG reduction as methane emissions from livestock manure are greatly reduced.

The decision is very good for the environment, for agriculture, and for the possibility of locally produced food. It also shows that the Swedish Environmental Protection Agency and Region Kalmar believe in the project and our ability to implement it. For Scandinavian Biogas, this is an important step in the implementation of the Group’s growth strategy, said Matti Vikkula, CEO of Scandinavian Biogas.

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