What does the agreement cover?
The agreement is for the sale of around 1 TWh of Bio-LNG at market price which, at the time of signing, represents an order value of SEK 2.7 billion. The agreement is Scandinavian Biogas’s largest to date. After the development phase, which will run through 2024, order volumes are expected to amount to 11,500 tonnes (160 GWh) per year for the 2025-30 period. The agreement, which reflects Scandinavian Biogas’s expansion goals, covers biofuel for heavy road transport.
Who are Alternoil?
Alternoil distributes and sells liquid fossil gas and Bio-LNG and is a pioneer in the transition to a more sustainable transport sector in the German market. Alternoil holds a dominant market position in Germany’s liquid vehicle gas market.
What’s the significance of the Scandinavian Biogas–Alternoil partnership?
Apart from the commercial aspect, Scandinavian Biogas has now initiated a collaboration with a highly competent, successful partner that has extensive experience in its area of the supply chain and that manages logistics in a green, efficient manner – opening the way for future growth for both parties.
The collaboration is also a foothold in the huge, well-developed German market. Since Germany includes total carbon dioxide reduction in the pricing of Bio-LNG (which is not done in Sweden), Scandinavian Biogas will be further encouraged to meet the German economic, environmental, and quality requirements. This will strengthen the Company’s position in the long run – not only in Germany, but in other markets as well.
What are Scandinavian Biogas’s prospects given this agreement?
Scandinavian Biogas is currently well positioned, and with this agreement has excellent prospects to grow in Germany and support Europe’s green transition. The agreement also creates prospects for the Company to grow profitably in other projects.