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Söderenergi extends biomass freight contract with Green Cargo

Swedish energy utility Söderenergi AB has extended its agreement with state-owned rail freight operator Green Cargo AB that will continue to transport biomass fuel from suppliers across Sweden to Söderenergi's fuel terminal in Nykvarn.

A block train with Innofreight’s XXXL containers at Söderenergi’s Nykvarn terminal (photo courtesy Green Cargo).

According to Green Cargo, under the existing logistics contract between Söderenergi and Green Cargo, valid until summer 2019, Söderenergi has chosen to exercise its option to extend for the transportation of biomass for an additional three years. The extension applies from August 2019 until 2022 and encompasses a volume of around 100 000 tonnes of biomass annually.

Rail freight in combination with the favourable fuel storage facilities at the Nykvarn terminal will continue to be cornerstones of Söderenergi’s fuel logistics. We are choosing to extend the partnership with Green Cargo, which has provided stable transportation and developed the rail system on an ongoing basis, said Olle Ankarling, Logistics Manager at Söderenergi.

Since the very start in 2009, Green Cargo says that it has “conducted an extremely punctual and highly reliable” block train services for Söderenergi. In January this year, the company introduced XXXL containers from Austria-headed Innofreight GmbH enabling the transportation of a higher volume per block train.

Together with Söderenergi, we have worked continuously with gradual adaptation and have developed the system’s scope. The latest change entailed maximizing trainload volumes by using larger containers that better meet the capacity needs. We are very pleased and proud that Söderenergi has chosen to extend that agreement, one year before the existing agreement expires, and we look forward to continuing our close partnership, said Johan Lorensson, Sales Executive at Green Cargo.

Located in Södertäilje, Söderenergi is the fourth largest district heating producer and operates of Sweden’s largest biomass-fired combined heat and power (CHP) plants at its Igelsta site.

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