Scandinavian Biogas has entered a long-term agreement with Alternoil for the delivery of bio-LNG to be included in the climate-neutral fuel REEFUEL distributed on the German transportation market. The agreed volumes are 8,000 tons during ramp up in 2024 to be 11,500 tons (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. The agreement also includes the optionality to increase volumes up to 2 TWh.
REEFUEL is a unique fuel in Europe that contributes to the decarbonization of heavy goods transport. It is produced from biomethane rendered by certified biological waste processes and green hydrogen generated by wind energy. 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.
“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. 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,” commented Matti Vikkula, CEO, Scandinavian Biogas.
Scandinavian Biogas will supply bio-LNG from facilities in Sweden and Norway to Alternoil´s filling stations. Contracted volumes correspond to approximately 25% of planned capacity in 2025. Alternoil, owner of the REEFUEL brand, plans to grow its refueling network to 60 stations by the end of 2022. 1 TWh bio-LNG equals 5,500 trucks driving 100,000 km.
“We are very impressed with Scandinavian Biogas and their proven expertise in creating efficient bio-LNG production facilities. The production of renewable energy is essential to the future well-being of the planet. 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,” said Jürgen Muhle, Chairman of avanca group, a company focused on sustainable energy logistics and owner of Alternoil.
EnviTec expands biogas plant to target biomethane transport market
Construction work to expand EnviTec Biogas’ original premises in Lohne, Lower Saxony is in full progress, the foundation is already poured. With the addition of an extra 640 sqm, this will mean the site then offers a total of 3,000 sqm of office space, with 750 sqm of storage. “Building this extra capacity in terms of space goes hand in hand with the expansion of our new business in the production of the advanced fuel bio-LNG,” said EnviTec CEO Olaf von Lehmden.
With the acquisition of BioEnergie Park Güstrow and the launch of the joint venture BALANCE EnviTec Bio-LNG GmbH, EnviTec Biogas is developing the new and lucrative bio-LNG market. “Alongside capital investment and our innovative strengths, we will naturally also be needing the necessary expertise and a sizeable addition to our team,” von Lehmden added. The expansion to the Lohne site will provide facilities for another 30 employees.
The company’s production location at Saerbeck is also being further expanded – in terms of space and also personnel. “The existing production area for our innovative EnviThan gas upgrading system is being expanded by 1,800 square meters,” commented von Lehmden.
Renewable energy is naturally an important point of focus for the building work itself, with Lohne and Saerbeck both being equipped with PV systems. The company’s vehicle pool is also being steadily transitioned to natural gas and electric vehicles that run on bio-CNG and PV power.
“We’re pleased to see an upswing in the market for the green fuel biomethane, which has finally come about – especially in transport – thanks to RED II,” explained the CEO, while also calling on lawmakers to engage fully with new technologies.
