Invests in a new Liquid Biogas Plant
Scandinavian Biogas has signed a contract with Biokraft AS and TrønderEnergi to build a new production plant for Liquid Biogas.
Scandinavian Biogas invests in a new large scale Liquid Biogas Plant
Scandinavian Biogas has signed a contract with Biokraft AS and TrønderEnergi to build a new production plant for Liquid Biogas. The investment amounts to 370 million NOK and initially 125 GWh Liquid Biogas (LBG) will be produced, increasing to 250 GWh when the plant is fully completed.
Scandinavian Biogas Fuels International (publ) has acquired >50% of the Biokraft AS shares, together with TronderEnergi AS they now own 93% of the company. This new investment will provide growth, cash flow streams as well as broadening the Group’s geographic operative area.
- The acquisition of shares in Biokraft AS and the building of a new plant for LBG stands well in line with our long term strategy. During 2016 Scandinavian Biogas will be able to deliver 300 GWh of Biogas to the Nordic Market. Together with the plant in Trondheim we will increase our production volume to 500 GWh by 2017, which is a big step toward our group goal of an annual production of one TWh of Biogas by 2020, says Matti Vikkula, CEO of Scandinavian Biogas.
The new plant will be built adjacent to Norske Skog AS Paper Mill in Skogn, on the outskirts of Trondheim. Construction began in the summer of 2015 and gas production should start by mid 2017. The Biogas production will mainly be based on organic rest products from the fishing industry and waste water from the paper mill.
- TrønderEnergi are very pleased to be investing together with a leading industrial partner such as Scandinavian Biogas, for the biogas plant at Skogn. Through this industrial partnership we will be able to take a leading role within biogas production in Norway, and thereby contribute to bringing Norway closer to becoming a sustainable society. This first plant will contribute with a CO2 reduction equivalent to 25 000 cars, which says something in itself on the benefits to society that we are now establishing, says Ståle Gjersvold, CEO of TrønderEnergi.
Increasing the production with Liquid Biogas will secure the supply for heavy transports and will also improve the conditions for those who wish to use fossil free fuel. In the long run industry and shipping will also be able to use biogas to a larger extent.
The plant will be delivered by Purac AB and will become the largest Nordic production plant for LBG. In the initial phase the plant will produce 125 GWh, when completed it should produce 250 GWh.
- We are proud to be part of an important contribution in the Nordic countries work towards achieving the goals set in Paris, to reduce emissions harmful to our global climate, says Jonas Fack, CEO of Purac AB.
Scandinavian biogas has financed this investment in Trondheim partially through new Corporate Bonds in the Nordic Market. Bank financing is provided from Sparebank 1 SMN and Innovatjon Norge, where EKN has provided an insurance for payment risks.
For further information please contact:
Matti Vikkula, CEO Scandinavian Biogas, +46 70 597 99 38, firstname.lastname@example.org
Håkon Welde, Head of asset management TrønderEnergi, +47 73 54 16 56, email@example.com
Håvard Wollan, CEO Biokraft AS, +47 92 88 33 83, firstname.lastname@example.org
www.scandinavianbiogas.com www.tronderenergi.no www.biokraft.no