Sumitomo enters biogas sector with Danish joint venture

Denmark-based Skovgaard Energy and Sumitomo Corporation have signed a joint venture in a bid to drive e-SAF and biogas production in the Scandinavian country.

Under the North Sky brand, the partnership aims to combine “the local strength in north-west Jutland with a global outlook from Tokyo.”

It marks Sumitomo’s first participation in a biogas production business and aims to accelerate the growth of its energy solutions division. It has positioned bioenergy as a key method for achieving carbon neutrality in its business operations by 2050.

The new company aims to produce around 40 million cubic metres of biogas, equivalent to the annual gas consumption of around 20,000 Danish households.

“If we are to release the full potential [of biogas], it requires more than local forces,” according to a Skovgaard statement.

Denmark has set a target of powering its national gas grid entirely on biogas by 2030, capitalising on the organic waste generated on its farms.

As a synthetic fuel produced from biomass-derived CO2 and green hydrogen, e-SAF is expected to see rising demand as it moves towards commercial scale.

Sumitomo is targeting domestically produced SAF with the Morisora project in Japan, following a memorandum of understanding signed in February. It has also signed similarly with Renikola in Malaysia to explore bioenergy and biomethane development.