• 2022 February 10 16:34

    Furetank secures biogas supply as step towards fossil-free shipping

    Liquefied biogas is one of the keys to fossil-free shipping – but lack of supply is a major issue. The Swedish shipping company Furetank has signed a letter of intent with Eskilstuna Biogas, enabling the development of a new biogas plant producing around 5,000 tonnes of LBG annually, according to the company's release.

    Furetank commits to buying at least 75% of the produced fuel for 10 years. The gas will be extracted from manure and food waste from the municipalities of Eskilstuna and Strängnäs. It is upgraded to a 100% waste-based, fossil-free and renewable biofuel, LBG.

    Furetank strives to be a leader in climate and environmentally efficient shipping. They have developed a new series of vessels that are best in class globally, according to the climate standards for shipping set by the IMO. Today these vessels operate mainly on liquefied natural gas, LNG, but the ambition from the start has been to switch over to LBG as soon as possible. Now Furetank takes the first big step towards making the shift.

    The biogas plant will be the largest environmental investment in Eskilstuna in 20 years and corresponds to almost 10% of the municipality's total greenhouse gas emissions, according to Kaj Wågdahl, Eskilstuna Biogas AB Chairman of the Board.

    The project receives approximately SEK 140 million in grants from the Swedish Environmental Protection Agency's support for climate investments. An agreement with a large customer was a requirement for obtaining financing.

    – 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. It is also very gratifying to find a partner who sees business opportunities in leading the way towards climate neutrality, says Kaj Wågdahl.

    Before giving the new plant the final go, the production support for biogas recently decided by the Swedish government needs to come into force and all permits need to be in place.

    Production is planned to start in the last quarter of 2023, likely well-timed with the launch of the EU Emissions Trading System for shipping. When all shipping companies need to start paying for their carbon dioxide emissions, Furetank will be one step ahead.

    Furetank, based on Donsö in the Gothenburg archipelago, is a Swedish, family-owned shipping company active in tanker shipping since the early 1950’s. Furetank operates 9 owned vessels and is a founding member of the Gothia Tanker Alliance: a market platform for small and intermediate product tankers, operating 40 vessels in European waters.


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