Scandinavian Biogas in brief Scandinavian Biogas Fuels (SBF) was founded in 2005. The business idea of SBF is to operate and optimize industrial scale biogas plants. Many years of R&D resulting in a large portfolio of possible substrates Cutting edge process capabilities The company is well positioned regarding next generation of substrates, energy crops and forest residue/Biomass Nordics/Sweden is the main market High quality project pipeline in business plan for growth
Current production 16 Mm3 upgraded biogas Target production 36 Mm3 in 2016 2
Market potential
Sweden: Biogas as vehicle fuel is expanding Volume of vehicle gas sold in Sweden
Supply of gas for vehicles (‘000 Nm3)
Number of stations and NGVs In thousand
In 2006 the usage of biogas passed natural gas and is now almost 2x higher
Source: Swedish Gas Association and Statistics Sweden
Source: Scandinavian Biogas
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Why Biogas? Solving a global waste problem and producing energy at the same time A very limited environmental footprint , and in some cases even a positive footprint Increasing interest from bus companies and public due to environmental reasons, Taxi and commercial vehicles in fixed routes are next group of customers
Biogas superior to other biofuels regarding Carbon footprint
Dedicated feedstock production
Waste/ byproducts
Litres of oil equivalent per hectare of input
Land efficiency
Carbon footprint (Index, Diesel = 100)
Biogas
Energy crops
Biogas
BtL Sugar cane
Ethanol
Cereals
Ethanol
Rape-seed
Rapeseed
Best case Worst case
BtL
Rapeseed oil
Biodiesel
Bioethanol Km per hectare Additional km if biogas produced from waste
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Next major step in biogas production Possible substrates, GWh/a 450.000 385.000
400.000
350.000 300.000 250.000
Development
200.000 150.000 100.000 50.000
940
470
940
970
Food waste
Garden waste
Industrial waste
Sewage sludge
10 780
0
Agricultural Forest growth waste
Forest residue/biomass expected to be the next main substrate Concept for profitability is to combine biogas production with district heating/energy production – reasonable capex and high yield Scandinavian Biogas and Biokraft have been testing and developing this for some years now together with preferred subcontractors Source: Modified from: Basic data Biogas Sweden (2007) and K. Sahlen (SLU) 2008
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Experiences from Swedish market •
Biofuels need political support • Biogas production still more expensive than fossil fuels • Private companies will not choose biogas if fossil cheaper alternatives are available. • A political statement concerning CO2 footprint is necessary for the development of all types of biofuels
In Sweden: carbon dioxide tax exception, toll exceptions and tax exception for company cars
•
Market in Sweden • Nature gas is not a commodity • No listed gas prise or public marketplace • No functional international/EU rules for trading • Major grid only on the west coast
•
Customers and Creditors strive towards long term contracts • Public transportation need to secure biofuel supply over at least two tender periods. • Banks and investors want secured cash streams
Scandinavian Biogas main customer Stockholms Lokaltrafik set standard in tender terms. 6
Scandinavian Biogas position in regional market SL Bus depot SL Bus depot Bromma plant Loudden plant Gas Grid SL Bus depot Planned SL depots Henriksdal plant Gas filling stations
SL Bus depot The SBF plants are strategically positioned with access to the Stockholm Gas grid connecting us to a number of potential customers
Important keys for Scandinavian Biogas To secure a proper development, decide on a cross-political Biogas Strategy Design long-term, simple and understandable subsidies related to carbon dioxide footprint Use subsidies on macro level instead of in details. Market will adapt and solid business will grow. Public transportation should take the lead in infrastructure development
