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With an estimated production capacity of 120 GWh, the Mönsterås plant will produce liquefied biogas (bio-LNG) using manure as feedstock and off-takers are expected to be the maritime and heavy transport sectors.

As previously reported, in December 2021 Scandinavian Biogas announced that it had secured SEK 154 million in funding from the Swedish Environmental Protection Agency's programme, Klimatklivet, to enable the company to press ahead with plans to build  the biogas plant.

The project in Mönsterås began as an initiative in 2016 by local farmers, leading to cooperation with Scandinavian Biogas in 2018. The parties formed a jointly owned company to design, build, and manage the planned biogas plant. Scandinavian Biogas owns an estimated 86% of the production company Scandinavian Biogas Mönsterås AB, while the remaining 17% is owned by the local farmers through their company Mönsterås Biogas AB.

The facility will convert 300,000 tonnes of dung from local pigs and poultry into about 120 GWh of liquid biogas (bio-LNG) – which is the equivalent to some 12 million litres of diesel.

Production at the facility is planned to begin in Q4 2024

Olof Boson, who is a farmer and chairman of the board of Mönsterås Biogas, commented on the biogas initiative: 

‘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.’

Michael Wallis Olausson, Chief Growth Officer at Scandinavian Biogas, added: ‘It feels good to finally have everything in order and that we have received 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.’

In June 2022, Klimatklivet also approved a SEK 154 million investment grant for Scandinavian Biogas to develop a new bio-LNG plant in Örkelljunga.

The gas will principally be produced using manure from animal farms in the area, which is about 500 km south of Stockholm.

If an investment decision is made before the end of 2023, production is expected to begin in mid-2025. The plant’s capacity is estimated at 130 GWh or the equivalent energy content of 13 million litres of diesel.

In February 2022, Scandinavian Biogas also said that that ‘very fast’ growth in the European biogas market had spurred it to set a 3 TWh biogas production target for 2030, which will mainly be met by bio-LNG.

EUROPE: Scandinavian Biogas inks $27.7 million bio-LNG Nordic supply deal





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