Energy company St1 has announced plans to construct a biogas upgrading and liquefaction refinery in Sobacken, Borås. The project is contingent on a long-term off-take contract to purchase raw biogas, which St1 has signed with Borås Energi och Miljö. St1 will also acquire two public gas filling stations from Borås Energi and Miljö. Construction is set to begin in autumn, with operations expected to commence by the end of 2023. St1 has partnered with Wärtsilä Gas Solutions to supply the biogas upgrading and liquefaction facilities. The project has received support from the Swedish investment support program Klimatklivet.
Energy company St1 has made an investment decision to construct a biogas upgrading and liquefaction refinery in Sobacken, Borås. A prerequisite for the biorefinery investment decision is the long-term off-take contract to buy raw biogas, which St1 has signed with Borås Energi och Miljö. With the agreement, also the two public gas filling stations of Borås Energi and Miljö in Åhaga and Hulta will be transferred to St1. St1 will continue expanding its biogas filling network in the Nordics to distribute this new liquid biogas production.
St1 will start the construction work in the autumn and the biorefinery is expected to commence its operations at the end of 2023. St1 has signed an agreement with Wärtsilä Gas Solutions to supply the biogas upgrading and liquefaction facilities. The project has been granted support from Klimatklivet – a Swedish investment support program targeting projects reducing climate impact.
St1 and Borås Energi och Miljö together create a strong value chain in renewable biofuels, both focusing in their own areas of expertise. St1 will upgrade and liquefy the raw biogas Borås Energi and Miljö produces from food waste and sewage sludge, and then sell it in its developing distribution network.
"Our modern facilities, in combination with the more than 30 years’ experience and competence we have within the company, will enable us to produce large quantities of biogas in the future. This collaboration with St1 allows our biogas to reach a large market”, says Magnus Kårestedt, CEO of Borås Energi och Miljö. “We have carefully chosen to start a collaboration with St1 because the company has a solid and versatile track record in the energy sector, as well as a strong growth strategy in the Nordic biogas market”, continues Kårestedt.
St1 is already a leading biogas player in Sweden, with about 30% market share in the road transport segment. Its biogas operations are located in the urban areas of Southern Sweden as well as in Stockholm. The company produces, imports, and exports biogas, and delivers it to customers through several sales channels. St1 has six biogas production and upgrading refineries in Sweden. Two of them, namely, Söderåsen Bioenergi AB and Falkenbergs Biogas AB, are majority-owned subsidiaries.
St1 started off its biogas business in Finland and Norway last year. The company is cooperating with Knapphus Energi and Nor-log in building infrastructure for biogas in Norway. In Finland, St1 and food company Valio have established a joint venture to produce renewable biogas from dairy farm manure and other agricultural by-products, mainly as fuel for heavy-duty transport. The joint venture aims to achieve production capacity of up to one terawatt-hour (TWh) by 2030.
“At St1, we reinforce our operations through strategic long-term partnerships. Strengthening our biogas business in the countries where we operate is a concrete step in the consistent and long-term implementation of our growth strategy. We are delighted that our plans with a solid partner, Borås Energi och Miljö, are now materializing, and we can start to decarbonize transport and accelerate the energy transition together,” says Matti Oksanen, Director of St1’s Gas Business.
Further information:
St1 Nordic Oy is an energy group whose vision is to be the leading producer and seller of CO2-aware energy. The Group researches and develops economically viable, environmentally sustainable energy solutions. St1 focuses on fuels marketing activities, oil refining and renewable energy solutions such as waste-based advanced biofuels and industrial wind power. The Group has 1290 St1 and Shell branded retail stations and gas filling points in Finland, Sweden and Norway. Headquartered in Helsinki, St1 employs currently more than 1200 people. www.st1.com
Borås Energi och Miljö makes use of energy flows in society and converts the energy in, among other things, waste into district heating, district cooling and biogas. The company offers energy and waste services, handles waste management and sewage treatment, and supplies drinking water in Borås. www.borasem.se