biogas

Gasum Increases Skangas Shareholding to 100% and Contracts With Stora Enso to Develop LBG Plant in Sweden

The energy company Gasum, headquartered in Espoo, Finland, and Sweden’s Stora Enso have signed a contract to build a biogas plant at Stora Enso’s Nymölla paper mill in Sweden. The plant, built and operated by Gasum, will turn the mill’s waste water effluent into renewable energy.
Gasum Increases Skangas Shareholding to 100% and Contracts With Stora Enso to Develop LBG Plant in Sweden
Courtesy of Skangas

Gasum plans to produce Liquefied Biogas (LBG) to sell as fuel for cars, buses, trucks, and ferries. The Nymölla biogas plant project includes biogas production, upgrading and liquefaction. The expected LBG production of the plant is 220 MWh per day. Start-up is expected during 2020.

LBG is similar to liquefied natural gas (LNG). LBG is a renewable and environmentally friendly fuel. If heavy-duty vehicles use LBG as fuel, the emission reduction can be as much as 85 percent compared to fossil fuel. LNG and LBG offer the heavy road transport segment a practical and cost-effective alternative to traditional fossil fuels.

“We are happy to be part of a project that will turn waste into valuable renewable energy,” said Michael Lindemann, Mill Director at Nymölla Mill. “For Stora Enso, substituting fossil-based fuels in our society with renewable solutions is a vital way to combat global warming. The cooperation with Gasum is a good example of the collaborative efforts Stora Enso is taking to do this.”

”We are pleased about the circular economy cooperation with the Stora Enso’s paper and pulp mill at Nymölla. The biogas plant is a sustainable solution for the processing of wastewater,” added Johanna Lamminen, Chief Executive Officer of Gasum.

The total investment volume of the project for Gasum is around €27 million and for Stora Enso around €5 million. Gasum has been granted an investment subsidy of SEK 121.5 million (€12.7 million) by the Swedish Environmental Protection Agency under the Climate Leap (‘Klimatklivet’) program.

Located in southern Sweden, Stora Enso’s Nymölla Mill has an annual production capacity of 340,000 tonnes  pulp and 485,000 tonnes woodfree uncoated (WFU) paper for office and postal use. Stora Enso’s well-known office paper brand Multicopy is produced in Nymölla.

Gasum has also revealed it has purchased the remaining shareholding in the Norwegian LNG provider Skangas from the Lyse Group. In 2014, Gasum became Skangas's majority shareholder with a 51 percent holding, and in 2017 the share grew to 70 percent.

"Completing the acquisition of Skangas gives us even better opportunities to build and develop the Nordic gas ecosystem and to respond to growing demand. We thank the Lyse Group for the good co-operation in developing the LNG market,” said Lamminen.

In September, Gasum announced the company’s intention to expand the Nordic LNG filling station network to around 50 locations by the early 2020s. An extensive filling station network in Finland, Sweden and Norway enables significant increases in the use of liquefied natural gas and liquefied biogas in road haulage and distribution traffic.

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