The Swedish Environmental Protection Agency's program Klimatklivet has granted Scandinavian Biogas SEK 154 million in an investment grant to be used in a new investment project to produce liquid biogas (Bio-LNG) in Skåne's Fagerhult in Örkelljunga municipality, about 500 kilometers south of Stockholm. The gas is mainly to be produced by utilizing manure from animal farmers in the area. In addition to manure, other residual products from agriculture and food production will also be used.

Given that an investment decision is made before the end of 2023, production is expected to begin in mid-2025 and contribute to estimated profitability in 2026. The capacity is estimated at 130 GWh or the equivalent energy content of 13 million liters of diesel. The annual CO2 reduction is estimated at 53,000 tons.

The plant will also produce 200,000 tons of high-quality biofertilizer for the region's agriculture. The investment an important milestone in the company´s long-term growth strategy where the target is set on 3 TWh at 2030. The facility is planned to be built on municipal industrial land just east of Skånes Fagerhult in Örkelljunga municipality.

The municipality and Scandinavian Biogas have jointly developed a plan for a possible localization. The project will now proceed with the usual preparations for investment decision, e.g. environmental permit. the company will also, together with the municipality, somewhat expand the detailed planned area.