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Scandinavian Biogas to set up shop in Germany

Scandinavian Biogas to set up shop in Germany
Scandinavian Biogas Fuels International AB (SBF) has "identified concrete investment opportunities for the construction of biogas plants in Germany" and has decided to establish a subsidiary in the strategically important German market (image courtesy SBF).

Sweden-headed biogas project developer and fuel producer Scandinavian Biogas Fuels International AB (SBF) has announced that it has "identified concrete investment opportunities for the construction of biogas plants in Germany" and has decided to establish a subsidiary in the strategically important German market.

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According to a statement, the group’s ambition is to build a strong pipeline of potential biomethane (aka renewable natural gas – RNG) plant projects in Northern Europe.

SBF’s s strategic goal is to reach a production capacity of 1.2 TWh of biomethane in 2026 and 3 TWh by 2030 by establishing several large-scale organic wastes and agricultural-based biogas plants in Scandinavia and Northern Europe.

The Group currently has facilities in Sweden, Norway, and South Korea.

Germany a priority

The German market is prioritized given its size, well-developed gas infrastructure, and pro-biogas attitude.

The company has signed an agreement with German Biogas i Sverige AB, a project development company that has initiated the development of two production plants at undisclosed locations in Germany with a combined capacity of approximately 240 GWh.

Each production plant company will be co-owned by Scandinavian Biogas (85 percent) and German Biogas i Sverige AB (15 percent).

Closing will take place once each company is registered, and all other conditional agreements are met, which is expected to take place no later than May 31, 2023.

Production is to be mainly based on manure and other organic waste from agriculture, and the plan is to inject the biomethane into the German gas network, while a part or all thereof may be liquefied to bioLNG instead.

The remaining digestate is to be post-processed into bio-fertilizer which is returned to nearby farms completing the cycle.

Entering the vast German market is a strategic milestone and an important addition to our production targets in 2026 and 2030. The very attractive German biogas market is in a transition process from electricity production to biomethane production, and we aim to be an important player in that transition, said Matti Vikkula President and CEO of Scandinavian Biogas.

FIDs anticipated in 2024

The next step involves preparing for the final investment decisions (FIDs), which include among other things, securing land and environmental permits, and specifications, choosing technology partners, and catering for each facility to be financed.

The FIDs are anticipated to be made in 2024, within 12 and 20 months respectively, and the total investment is estimated at approximately EUR 90 million.

Commissioning typically takes place within 14-18 months from the investment decision.

Through this collaboration, we get a partner to support us in our development of the German market. It feels very good to start the partnership with two established projects and options for further future biogas projects, said Michael Wallis Olausson, Head of Growth, at Scandinavian Biogas.

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