Sweden-headed Sweden-headed biogas project developer and fuel producer Scandinavian Biogas Fuels International AB (Scandinavian Biogas) has disclosed that it has entered into a long-term supply agreement for the delivery of bioLNG to be distributed on the German transportation market.
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Scandinavian Biogas has entered into a bioLNG supply agreement with leading German liquefied natural gas (LNG) distributor Alternoil GmbH.
I am very excited to announce this breakthrough agreement with Alternoil, one of the leading distributors in driving the transition to a carbon-neutral transportation sector, said Matti Vikkula, CEO of Scandinavian Biogas.
A pioneer in the transformation process for clean heavy goods transport, Alternoil currently has 40 LNG filling stations across its network with another 20 expected to be operational by the end of this year.
We are very impressed with Scandinavian Biogas and their proven expertise in creating efficient bioLNG production facilities. The production of renewable energy is essential to the future well-being of the planet, said Jürgen Muhle, Chairman of avanca group, a company focused on sustainable energy logistics and owner of Alternoil.
Growth for REEFUEL
Since the end of 2020, Alternoil has also been offering REEFUEL – a bioLNG or eLNG option – at its filling stations in addition to fossil LNG.
REEFUEL is a unique fuel in Europe that contributes to the decarbonization of heavy goods transport.
The climate-friendly fuel is produced from biomethane aka renewable natural gas (RNG) rendered by certified biological waste processes and green hydrogen generated by wind energy.
We see huge potential in using discarded food and other waste to create carbon-neutral transportation fuel. REEFUEL can be used in any LNG-fueled truck and contributes significantly to the decarbonization of heavy-duty transport, Jürgen Muhle said.
The agreed volumes are 8 000 tonnes during ramp-up in 2024 to 11 500 tonnes (160 GWh) per year from 2025 to 2030. Corresponding to over 1 TWh energy with a total order value of approximately SEK 2.7 billion (≈ EUR 255.7 million) based on current energy prices and the price of carbon dioxide (CO2) emission reduction benefits.
The agreement also includes the option to increase volumes up to 2 TWh worth approximately SEK 4.7 billion (≈ EUR 445.1 million) at current values.
Market demand for Bio-LNG is expected to grow significantly and Scandinavian Biogas is well-positioned to exploit this development.
The ambition is to reach an annual production capacity of at least 3 TWh in Europe by 2030.
This agreement is also a major milestone for Scandinavian Biogas in our ambition to deliver on our previously communicated business plan – achieving an annual capacity of at least 700 GWh by 2024, said Matti Vikkula.
Scandinavian Biogas will supply bioLNG from facilities in Sweden and Norway to Alternoil´s filling stations. The contracted volumes correspond to approximately 25 percent of planned capacity in 2025.
