Scandinavian Biogas pens German supply deal

Sweden's Scandinavian Biogas has signed a long-term agreement with German LNG distributor Alternoil on bio-LNG deliveries, the companies said on June 12.

The pair have agreed on 8,000 metric tons of supply in 2024, rising to 11,500 mt/year between 2025 and 2030, totalling more than 1 TWh in total at an order value of 2.7bn kronor ($270mn). The agreement includes an option to expand deliveries to a total of 2 TWh, with a value of 4.7bn kronor.

The biogas will come from Scandinavian Biogas' facilities in Sweden and Norway, and will account for a quarter of its planned production capacity in 2025.

Alternoil will distribute the supply under its REEFUEL brand. The company plans to expand its distribution network in Germany to 60 stations by the end of this year.

"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,” Scandinavian Biogas CEO Matti Vikkula said in a statement.

"We are very impressed with Scandinavian Biogas and their proven expertise in creating efficient Bio-LNG production facilities," the chairman of Alternoil's owner Avanca Group, Jurgen Muhle, added.