Scandinavian Biogas receives SEK 154 million in investment support from Klimatklivet to build biogas plant in Örkelljunga
The Swedish Environmental Protection Agency's program Klimatklivet has granted Scandinavian Biogas SEK 154 million in an investment grant to be used in a new investment project to produce liquid biogas (Bio-LNG) in Skåne's Fagerhult in Örkelljunga municipality, about 500 kilometers south of Stockholm. The gas is mainly to be produced by utilizing manure from animal farmers in the area. In addition to manure, other residual products from agriculture and food production will also be used.
Given that an investment decision is made before the end of 2023, production is expected to begin in mid-2025 and contribute to estimated profitability in 2026. The capacity is estimated at 130 GWh or the equivalent energy content of 13 million liters of diesel. The annual CO2 reduction is estimated at 53,000 tons. The plant will also produce 200,000 tons of high-quality biofertilizer for the region's agriculture.
The investment an important milestone in the company´s long-term growth strategy where the target is set on 3 TWh at 2030. The facility is planned to be built on municipal industrial land just east of Skånes Fagerhult in Örkelljunga municipality. The municipality and Scandinavian Biogas have jointly developed a plan for a possible localization. The project will now proceed with the usual preparations for investment decision, e.g. environmental permit. We will also, together with the municipality, somewhat expand the detailed planned area.
"It feels great that we can now move forward with this important project," says Michael Wallis Olausson, who is Director for Group Growth at Scandinavian Biogas Group. The plant will produce a large amount of Bio-LNG, which is necessary for the green transition, but will also be an important part of the development of the region's agriculture. Örkelljunga municipality's pragmatic attitude has been an important piece of the puzzle to get this in place”.
” This type of industry, where you take care of local manure and at the same time reducing methane slip to the atmosphere is very positive. Örkelljunga is strategically located in the middle of a very productive farming area, with many hard working and innovative farmers. The Biogas plant is very important as a step to reach sustainable farming, and at the same time produce a green fuel. We like to wish Scandinavian Biogas very welcome to Skånes Fagerhult”, says Christian Larsson, Mayor of Örkelljunga.
For further information, please contact:
Matti Vikkula CEO and President
Mobile +46 (0) 70 597 99 38
E mail matti.vikkula@scandinavianbiogas.com
Scandinavian Biogas is a leading Nordic producer of biogas for vehicle fuel and fertilizer. Biogas is CO2-neutral and made from sewage and household, agriculture as well as industrial organic waste. Today Scandinavian Biogas has facilities in Sweden, Norway and Korea. In 2021, the company delivered 366 GWh of energy. Scandinavian Biogas has 100 employees and total net sales of SEK 394 million in 2021. The head office is located in Stockholm and the company is listed on Nasdaq First North. Certified advisor is Erik Penser Bank AB, telephone: +46 (0) 8-463 80 00, certifiedadviser(at)penser.se. www.scandinavianbiogas.com
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