Gasum secures long-term financing to boost biogas production

Nordic renewable energy company Gasum has secured a long-term financing agreement totalling €565mn ($611.71mn) with its existing lenders, the company announced on June 12. 

Gasum’s green loan amount has increased from €152-€175mn. This green loan will finance the company’s investments in biogas production, both by expanding production at existing plants and constructing new large-scale facilities.

The green loans are managed under Gasum’s green finance framework, where biogas-related assets receive a top 'dark green' rating from independent ratings issuer Shades of Green. The loan will be exclusively used for assets related to biogas production and distribution.

The margin of the sustainability-linked revolving loan facility is tied to Gasum’s own sustainability goals, which include increasing renewable gas volumes, ensuring sustainable biogas production, and enhancing safety measures.

“These newly negotiated financing facilities demonstrate Gasum’s commitment to sustainability. The green energy transition is embedded in our business strategy, and this long-term financing is vital for making the necessary investments that enable us to deliver more renewable energy to our customers,” said Kai Laitinen, Gasum’s CFO.

Gasum aims to bring 7 TWh/year of renewable gas to the Nordic market by 2027. This is four times the current amount and would result in a combined annual carbon dioxide reduction of 1.8mn tonnes for Gasum’s customers.

The company has expertise in natural gas, LNG, biogas, liquefied biogas (LBG), and electricity markets. It owns and operates 17 biogas plants and an extensive network of gas filling stations across the Nordic countries.

Recently, Gasum, in partnership with commercial vehicle manufacturer Scania, opened a biogas filling station in Sodertalje, Sweden.