Under the deal, Furetank commits to buying a minimum of 75% of the LBG produced at a new biogas plant, enabling the development of the 5,000 tonne-per-year facility. Feedstocks for the plant will be manure and food waste.
Last year, the Swedish shipowner said its series of 18,000 dwt gas-powered tankers would meet the IMO’s 2050 emissions reduction targets.
“It feels fantastic to access liquefied biogas in Sweden. With LBG produced in the right way, we can run our vessels completely without emitting CO2 or harmful particles. 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,” said Furetank CEO Lars Höglund.
Development of the Eskilstuna facility will receive support of SEK140m ($15.1m) from the Swedish Environmental Protection Agency, which hinged on the support of a large customer. Final approval for the new plant depends on permits and government biogas production support; the facility aims to start production at the end of 2023.
“We became the first shipping company in Sweden and second in the world to bunker LBG in 2018. For us it was a statement; we want to head in this direction. Now we have a clear plan for the transition and are negotiating more contracts in Sweden and other European locations,” said Höglund.
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