Monday, 27 September 2021
MAKEEN Energy and Nature Energy will build and operate the first Danish biogas liquefaction plant. The two Danish energy companies have agreed to form a joint company, NORDLIQ (Nordic Liquefaction) to this end.
The plant will be based in Frederikshavn and aims to produce annually 20 kilotonnes of Bio-LNG (also referred to as LBG or Liquid Bio Gas), with an eye for expanding this capacity to 120 kilotonnes at a later stage. Operation is planned for mid-2023.
Bio-LNG is CO2 neutral and has strong demand in transport, particularly in navigation where it can be used as a drop fuel for regular LNG. Furthermore, the maritime emissions are slated to fall under the EU ETS scheme under the previously announced Fit for 55 Package. However, production costs are high and capable production facilities in Denmark have been scarce. The plant to be built by NORDLIQ will hopefully change this scenario.
“LBG is a cornerstone green fuel of the future,” said Bo Larsen, chief operating officer of MAKEEN. “We’re very proud to lead this project in collaboration with Nature Energy and happy to be able to offer a responsible and effective solution for the transformation of the transport sector at this important time.”
MAKEEN operates several bunkering solutions in Denmark including for the Samsø Ferry, which is expected to transition to the green fuel once the liquefaction plant is operational.
The Frederikshavn Harbour sees traffic between 60 000 and 100 000 ships annually. NORDLIQ is expected to collaborate with Bunker One, which has local operations and will handle sales and marketing to the shipping sector.
Peter Zachariassen, CEO at Bunker One, commented: “We’re extremely proud to get the possibility to offer the maritime sector a Danish-produced product that we see a rapidly growing demand for – a demand that has never been higher.”
The plant will be connected directly to the national grid, projected by the government to convey only green gas by 2040. This will allow the liquefaction plant to tap into a network of facilities that delivered more than 4 TWh of biomethane in 2020. The eventual capacity of the plant (120 kt/year) would be equivalent to just under 2 TWh.