UPDATE: Nordic duo will build biogas liquefication plant in Gothenburg for bunkering

Swedish gas firm Nordion Energi has confirmed its investment in a biogas liquefaction plant at the Swedish Port of Gothenburg.

PHOTO: Container terminal in the Port of Gothenburg. Getty Images

“The investment comes at a strategic time when the Swedish market for liquefied biogas is expected to grow to over 10 TWh by 2030,” the company said.

Finnish biogas supplier ST1 Biokraft has agreed to offtake part of the plant’s capacity.

"We are expanding our availability of [liquefied biogas] LBG for our customers in heavy transport, shipping, and industry,” Miika Johansson, chief executive of ST1 Biokraft said, noting that the plant's "strategic location" in the Port of Gothenburg makes bunkering accessible.

“The plant will help to ensure that liquefied biogas will be easily available to the shipping industry, every day, around the clock,” Jill Söderwall, business area manager at the Port of Gothenburg added.

Nordion Energi first announced plans for this project in March. The plant will be capable of liquefying up to 250 gigawatt-hours per year (GWh/year) starting in 2026. This is roughly equivalent to around 16,250 mt/year, according to ENGINE calculations.

LBG - also known as liquefied biomethane (LBM) - consists of 99.8% methane, according to Nordsol, a Dutch biogas supplier. This composition allows LBG to function as a drop-in fuel for LNG, similar to how biofuels can be blended with MGO or VLSFO. Vessels capable of running on LNG do not require modifications to operate on pure LBM or LBM-LNG blends.

The LBG will be stored in a temporary storage tank in the Port of Gothenburg. It will then be supplied directly to ships through a pipeline or by truck.

The plant is scheduled to become operational by 2026.

By Konica Bhatt

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