Swedish Biogas International is constructing a new biomethane production plant in Katrineholm. All of the biomethane that is produced by the plant will be purchased by AGA as a fuel supply to motorists in the Stockholm area. The demand for biomethane used in vehicle fuel has increased significantly during the last few years. Over a five-year period, demand from AGA in Stockholm increased from 200,000 cubic meters to more than 5 million cubic meters per year. During the next year, demand is expected to rise even further.
It is expected that production at the Katrineholm plant will be underway in approximately one year. The biomethane from this plant will be produced from raw materials, primarily manure. The plant will produce approximately 3 million cubic meters per year. The investment is being made by Swedish Biogas, together with leading agriculturists in the region.
The investment value of the order is SEK 40 million (USD 5.8m), with SEK 300 million (USD 43.5m) as payment for the gas that will be delivered during the term of the agreement.
“We are proud to be able to help AGA build up its market as a production partner for biogas,” says Peter Undén, CEO of Swedish Biogas International. “The order means that we now have signed production/delivery agreements in excess of SEK 25 million cubic meters per year in Sweden as of 2011. For 2008, the total volume for the Swedish market was 33.5 million cubic meters,” he says.
“AGA believes in biogas as the best vehicle fuel available, from an environmental perspective,” says Svante Frid, head of marketing for AGA in northern Europe. “With this investment, we will do everything possible to meet the rising demand,” he says.
(Press Release)
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