Swedish Energy Agency Funds First Part of ‘Drive LBG’ (RNG)

Volvo FH LNG at Gasum filling station

Further to the autumn funding announcement by the Swedish Energy Agency for an innovation cluster for liquid biogas, it has been decided that Energigas Sweden will be responsible for driving the “Drive LBG” cluster. The overall effort will be of great importance to the biogas (renewable natural gas – RNG) market and to achieve Sweden’s environmental and climate goals.

During the spring of 2018, the government decided that SEK 200 million (USD 22.3m) would be allocated to establishing an innovation cluster for liquid biogas. In order to maximize the benefit of Swedish industry, Energigas Sweden, in collaboration with regional biogas networks around Sweden, has developed a concept for a national effort in the area. The initiative, which has been named Drive LBG, has now in a part decision been awarded more than SEK 100 million.

The initiative strengthens the Swedish biogas market, which contributes to many social benefits. The biogas industry creates jobs, new export opportunities, and helps Sweden to take the lead in climate work. Biogas also provides security of supply through domestic production of fuel and fertilizer for agriculture.

“It is very pleasing that we have received this grant. This means major development opportunities for the gas industry and is an important step in the transition to a sustainable society,” said Maria Malmkvist, CEO of Energigas Sweden.

SkanGas LBG bunkering of Fure Vinga at Port of Gothenburg, June 2018.

Through a combination of compressed and liquid form, biogas becomes a realistic and competitive renewable alternative for more and more markets. Cars, buses, trucks, industry and shipping are some examples.

“Now we will commence the first part of the government’s investment in liquid biogas. We hope that the remaining parts, including shipping and heavy transport, will soon be in place. These are two important sectors for achieving Sweden’s environmental and climate goals. They are also very important from a Swedish business perspective,” Malmkvist said.

“In our proposal for a National Biogas Strategy, we made it clear that the use of biogas in Sweden can increase from today’s approximately 3 terawatt hours to 15 terawatt hours in 2030. From an export perspective, one of the major benefits of waste-based biogas is that it is a solution that can be implemented and exported globally. All countries have waste that needs to be taken care of,” says Malmkvist added.

Biogas Facts

Liquefied biogas, LBG, is a fuel produced from processing of organic waste. It does not provide any net emissions of carbon dioxide. Biogas consists mainly of methane. Cooling the biogas to -163 degrees Celsius turns it into liquid form. Liquid biogas is a good alternative fuel for heavy transport applications, for which its use is increasing in Sweden, but also for shipping and industry.