Shipping company Furetank is set to boost the potential for fossil-free shipping following an agreement signed with Ekilstuna Biogas which will see development of a new biogas plant capable of producing around 5,000 tonnes of liquefied biogas (LBG) per year.

The gas will be extracted from local manure and food waste before being upgraded to a 100% waste-based fossil-free and renewable biofuel. 

Commiting to buying at least 75% of the produced fuel for ten years, Furetank has developed a series of vessels that operate mainly on liquefied natural gas (LNG). The new agreement will see the company taking steps to shift towards LBG. 

Stating that the agreement will allow them to run vessels without emitting harmful emissions, Lars Hoglund, CEO, Furetank, added, “This is a strategic move. We developed the new efficient vessels, chose gas as a fuel and offset remaining emissions.” 

“Now we move on to securing our own supply of LBG.” 

The new plant will be funded with around SEK 140m in grants from the Swedish Environmental Protection Agency’s support for climate investments and is set to be the largest environmental investment in Eskilstuna, Sweden in 20 years.

“In addition to these grants and public production support for biogas, a long-term agreement with a strong partner is required to make this big investment and achieve the large-scale biogas production that we are planning,” commented Kaj Wagdahl, Chairman of the Board, Eskilstuna Biogas AB. 

Following acquisition of relevant permits and the go-ahead from the Swedish government, the new plant is expected to begin production in the fourth quarter of 2023.