From Biogas to Bio-LNG with Nordsol

There are several ways biogas can be used. Currently, it is widely used to generate electricity, but biogas can be used more broadly. For example, there is a possibility to clean biogas so that it can be used as a substitute for natural gas. But it is also possible to liquefy biogas into bio-LNG, which Nordsol sees as an important step for the future of mobility.

Paul Roßteutscher, Finance Manager Nordsol: "Blending biogas is quite a complex process. Nordsol has developed an innovative and efficient technology for this. However, this new technology had to prove itself first, which is why Nordsol built the Netherlands' first bio-LNG plant in the port of Amsterdam a few years ago. This installation is located on the site of Renewi Organics. This site produces biogas from over-date supermarket products and restaurant waste. Nordsol's plant then converts this biogas into bio-LNG for road transport. This plant was opened in 2021 by King Willem-Alexander and has been running very well for three years now. Shell purchases the bio-LNG for sale at gas stations in the Netherlands. Thus, the plant provides a constant source of income. In addition, the plant acts as a showcase for new customers. A second plant was recently built in Wilp in Gelderland, the Netherlands. This was opened in September by Queen Máxima. The feedstock (or bio-material) for this plant comes from GFT waste from the region."

Nordsol's goal, by selling the technology to biogas producers, is to rapidly scale up the production of bio-LNG in Europe, thus making a significant contribution to the energy transition in the transportation sector. And despite there being a market of 20,000 biogas plants within Europe, it remains a niche market.  An in-house team of business development managers and engineers approaches biogas producers in Europe for whom this technology is of interest. Sometimes this team works with local agents because each country has its own regulations and customs.  And often the licensing processes are lengthy and financing is quite a challenge.

It turns out that there is a lot of interest from several international parties. One of these parties comes from the south of Portugal and is active in the processing of olives. The waste from these olives is processed into biogas at the plant, which is then separated into biogenic methane and CO2 at the plant to be supplied by Nordsol, after which the biomethane obtained is further processed into bio-LNG at the plant by flocculation. The bio-LNG produced is used as CO2-neutral (or even CO2-negative) fuel in heavy road transport and shipping. In addition, the bio-CO2 obtained has applications in greenhouse horticulture, as a coolant (dry ice) or as a raw material for chemicals or synthetic fuels.

Paul: "Atradius DSB was already a well-known player for us. After the first contact with our house bank, it turned out that a counter guarantee was important after all. We then asked Atradius DSB to issue the counter-guarantee for this transaction, as well as insurance against unjustified drawdown."

Furthermore, Nordsol also qualified for the green cover. This was partly because of the project's contribution to sustainability. In addition, the green coverage also made it possible to pass due diligence despite this scale-up's limited track record. Nordsol's future looks bright. In fact, they have a good business case for biogas producers. Indeed, the advanced plants are becoming more profitable and there is still a lot of room for growth, as there is still a lot of organic waste that is not being used. This also provides alternative sources of income for farmers. So this could very well serve as feedstock (bio-material) for the bio-LNG plants.

Paul: "There are also already a few nice example cases where the installations are used in a fully circular way. For example, there is a customer in the United Kingdom that collects waste from supermarkets. They turn the waste into bio-LNG, which they run their own trucks on. And in addition, bio-LNG is delivered back to those same supermarkets. So this has a huge impact on making the economy more sustainable."

Paul: "Right now, oil and gas is still dominant, but in the future this is definitely going to change. We expect electrification, synthetic fuels and biofuels to spell the main roles. Of these, bio-LNG is the renewable fuel that is already widely available for heavy long-distance transportation."