June 30, 2023 [LNG Prime]- Sweden-based bio-LNG producer Biokraft International, previously known as Scandinavian Biogas, has secured land for a new bio-LNG production plant it plans to build in Perstorp, Sweden.
The firm said in a statement on Thursday that the Perstorp municipality has approved a land allocation agreement on municipal, industrial land, and now the environmental permit process for the plant can begin. It expects the process to take 9 to 12 months.
Following environmental approval, Biokraft expects to start production in about 18 months, depending on securing financing and other administrative requirements, Biokraft said.
Biokraft said it has identified Perstorp, located in northern Skane, as a suitable site for a large-scale liquefied biogas or bio-LNG plant.
According to Biokraft, the location is close to Northern Europe, has excellent road connections and is in a landscape with plenty supplies of manure and organic waste from surrounding agriculture.
Boosting bio-LNG production
Biokraft said the plant will be the same type the company is building in Monsteras and is also planned in Kalmar and Scania’s Fagerhult, where environmental permit processes are already underway.
Earlier this year, Scandinavian Biogas decided to build a new bio-LNG plant worth about $75 million in Monsteras, Sweden.
Finland’s Wartsila will supply its biogas liquefaction technology for the plant.
Such as in Monsteras, the facilities in Perstorp will convert local manure into liquefied biogas. Biokraft plans to team up with local farmers for this project as well.
The planned facility, which will create approximately 15 new jobs, will have a production capacity of 130 GWh annually, it said.
This corresponds to 400 heavy trucks’ annual diesel consumption, Biokraft said.
Biokraft intends to expand its current production capacity of 440 GWh to at least 3 TWh by 2030.
Also, the growth will be incremental and by 2026, the company aims to have 1.2 TWh of production capacity.
The increase in capacity will primarily result from building “several” new large-scale production facilities in northern Europe, it said.
“Demand for liquid biogas is booming in Sweden and the continent. Production in Sweden is needed to satisfy the domestic market and utilize synergies with our other facilities in Sweden,” Matti Vikkula, CEO of Biokraft, said.
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