The two have signed a letter of intent enabling the set up of a 5,000t/year liquefied biogas (bioLNG) plant in Eskilstuna.

Production is likely to start in Q4 2023. Gas will be extracted from manure and food waste coming from the municipalities of Eskilstuna and Strängnäs and then upgraded to bioLNG for use as fuel.

Furetank will take at least three-quarters of the production over ten years.

The bioLNG production plant has received SEK140m (about €13.4m) in climate investment support from the Swedish Environmental Protection Agency.

"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," Kaj Wågdahl, Chair of Eskilstuna Biogas' Board, commented.

Furetank will use the bioLNG to lower the carbon footprint of its fleet, including minimising the company's exposure to the inclusion of sea shipping into the European Union Emission Trading System.