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Scandinavian Biogas builds large-scale bioLNG in Sweden

Scandinavian Biogas builds large-scale bioLNG in Sweden
Olof Boson, Chairman of the Board of Mönsterås Biogas AB (photo courtesy Emma Sandebäck / Sveriges Radio).

Sweden-headed biogas project developer and fuel producer Scandinavian Biogas Fuels International AB (SBF) has announced that its subsidiary Scandinavian Biogas AB has decided to go ahead to build a planned large-scale liquefied biomethane (bioLNG) plant in Mönsterås, Sweden in collaboration with local farmers. Using livestock manure as feedstock, the 120 GWh per annum facility is estimated to begin production in Q4 2024.

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Located in Kalmar County, Mönsterås is characterized by many agricultural facilities where the production generates manure in large quantities that may limit livestock farming operations.

By using livestock manure as feedstock for biogas production, a sustainable cycle is created while allowing the farmers to further grow their business operations.

Large-scale plant

The estimated SEK 760 million (≈ EUR 68 million) plant investment will process some 300 000 tonnes per annum of cattle, pig, and poultry manure and biogenic waste to produce 120 GWh of liquefied biomethane (bioLNG) and 200 000 tonnes of digestate.

The Swedish Environmental Protection Agency’s (Naturvårdsverket) Climate Step (Klimatklivet) program granted the project SEK 154 million (≈ EUR 15 million) in economic support in 2021.

The project provides an excellent rate of emission reduction per invested SEK.

We have worked for many years to find a sustainable solution for our operations as the production of manure has become a limitation for us. The collaboration with Scandinavian Biogas brings us a solution that will manage the normal methane emissions, while simultaneously lowering the carbon dioxide emissions in the transport sector. There will be considerable environmental benefits from the local production of food when taking the whole cycle into consideration, said Olof Boson, a farmer and Chairman of the Board of Mönsterås Biogas.

BioLNG for road and shipping

The bioLNG will mainly be sold as fuel to the transport sector (maritime and heavy road transport) where 120 GWh is the equivalent of 12 million liters of conventional diesel.

The refined digestate will mainly be used as a biofertilizer in local agricultural production in order to maintain a sustainable cycle.

It feels good to finally have everything in order and that we have received a green light to start the project. The farmers need this biogas plant in order to be able to further develop their operations and our customers in Europe are in great need of fossil-free gas, said Michael Wallis Olausson, Chief Growth Officer at Scandinavian Biogas.

Long process

The biogas project in Mönsterås was initiated by local farmers already in 2016, and Scandinavian Biogas got involved two years ago.

The parties formed a jointly owned company with the responsibility to design, build, and manage the planned biogas plant.

Scandinavian Biogas owns 83 percent of the production company Scandinavian Biogas Mönsterås AB, while the remaining 17 percent is owned by the local farmers through their company Mönsterås Biogas AB.

The biogas project in Mönsterås will be the first of a number of projects that we will develop in collaboration with local farmers. We believe that local ownership is important, to make sure that parts of the future revenues also remain local. The benefits of liquefied biogas with manure as feedstock are obvious and enable a green transition for locally produced food products as well as for heavy transports. This is another important step for us at Scandinavian Biogas towards our long-term vision of a total production capacity of 3 TWh by the year 2030, said Matti Vikkula, CEO of Scandinavian Biogas.

The biogas plant will be delivered by the Portuguese company Efacec SA in consortium with the Swedish company Multibygg AB.

The facility for biogas upgrading and liquefaction will be delivered by Wärtsilä AB, the Swedish subsidiary of Finland-headed marine- and energy engineering and technology major Wärtsilä Oyj.

The production of manure has become a limitation for us, but this project brings us a solution that will manage the normal methane emissions of manure while simultaneously lowering the carbon dioxide emissions in the transport sector, ended Olof Boson.

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