Nordic biogas producer Scandinavian Biogas (SB) has signed an agreement with German liquefied natural gas (LNG) distributor Alternoil for SEK 2.7bn ($266bn) worth of Bio-LNG to be included in the climate-neutral fuel REEFUEL distributed on the German transportation market.

The fuel is produced from biomethane and utilises green hydrogen in its manufacture, making it a viable alternative to conventional fossil fuels as a way to decarbonise the notoriously hard-to-abate heavy good transport sector. 

With market demand for Bio-LNG set to grow significantly, the agreement will see SB delivering 8,000 tonnes of biogas to Alternoil during ramp up in 2024, rising to 11,500 tonnes per year from 2025 to 2030. 

1 TWh of Bio-LNG equals 5,500 trucks driving 100,00km.

Equating to over 1 TWh (terawatt hours) of energy, the deal includes the option to increase volumes up to 2 TWh, with SB’s ambition to reach an annual production capacity of at least 3 TWh in Europe by 2030. 

“This agreement is 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 (gigawatt hours) by 2024,” commented Matti Vikkula, CEO, SB. 

The Bio-LNG will be supplied from SB’s facilities in Sweden and Norway to be delivered to Alternoil’s filling stations.

What is REEFUEL?

According to Jürgen Mühle, Chairman of avanca group, a company focused on sustainable energy logistics and owner of Alternoil, REEFUEL can be used in any LNG-fueled truck and contributes ‘significantly’ to the decarbonisation of heavy-duty transport.

”We see huge potential in using discarded food and other waste to create carbon-neutral transportation fuel,” he added.

REEFUEL is Germany’s first renewable fuel from biological and household waste. The fuel, which is ideal for the transport sector, is RED-cert certified and saves up to 85% of CO2 emissions.