Rå BioPark and Barents NaturGass have entered into an agreement on the sales and distribution of biogas of a value of NOK 1,2 billion. "A milestone for the Northern Norwegian business sector and an important contribution to the green shift in the north," says the General Manager of Rå Biopark.
Rå Biopark and Barents Naturgas have signed a letter of intent for the sale and distribution of biogas. The agreement has a framework of NOK 1,2 billion.
That is revealed by the companies in a press release on Monday.
"This is a milestone for the Northern Norwegian business sector. The cooperation between us and Barents Naturgass is not just a long-term agreement on the sale and distribution of the biogas which we will produce, but also an enormous contribution to the green shift in the north," says General Manager Sigve Daae Rasmussen in Rå BioPark.
Rå Biopark is the largest environmental cooperation in Northern Norway. Six waste companies from the region are behind the establishment.
Over 60 000 tonnes of organic waste, such as food waste, sludge, and fish waste, from households and businesses from 41 municipalities will be converted into around five million liters of biogas in a new factory in Skibotn, Northern Norway.
Three years ago, few were interested in using biogas in industries or for land and sea transport. But now everyone wants it.
Filling stations at junctions in the north
Furthermore, Barents NaturGass will sell all the biogas to be produced in Skibotn.
Barents NaturGass is an energy company with headquarters in Hammerfest that delivers gas as an energy solution for industrial businesses, ships, and vehicles throughout entire Northern Norway. Gas is delivered by road with the help of purpose-built semi-trailers or containers.
Through the cooperation with Rå Biopark, the company could in the future also offer the customers a product that is hundred percent climate neutral, in addition to fossil natural gas, says Head of Sales Mikael Rikstad Iversen of Barents Naturgass.
"For us in Barents NaturGass, this will entail a paradigm shift in which biogas enters into our product mix. Three years ago, few were interested in biogas in industries or for land and sea transport. But now everyone wants it. It is therefore extremely important for us to be part of this exciting industrial project in the north," he says.
Barents NaturGass annually sends out 2000 truckloads of natural gas from Melkøya to various destinations at the Cap of the North. The company delivers energy to 5000 workplaces, including several ferry connections. In the Rå Biopark agreement, there will be cooperation on the development of a network of filling stations in Northern Norway.
"Establishing filling stations at all junctions in Northern Norway is of interest. We wish to establish a dialogue with customers and actors who are interested in having a filling station nearby," adds Iversen.
Rå Biopark is a Northern Norwegian industrial project and the owners have also decided that the gas is to be used in Northern Norway in order to develop the region.
Northern Norwegian industrial project
"Many are interested in biogas. We could have sold our entire production to the European market, but Rå Biopark is a Northern Norwegian industrial project and the owners have also decided that the gas is to be used in Northern Norway in order to develop the region," emphasizes Daae Rasmussen of Rå Biopark.
"We are therefore very pleased to sign an agreement with Barents NaturGass. That we have entered into a partnership in sale and distribution not only reduces the uncertainty of the project but also supports us with important expertise on gas. We are now one long step closer to the realization of the biopark in Skibotn. The final investment decision will be made in late fall," he concludes.
Rå Biopark is the largest environmental cooperation in Northern Norway.
Behind the establishment are the six waste companies Hålogaland Ressursselskap IKS (33,40 %), Remiks Miljøpark AS (33,40 %), Reno Vest IKS (14,20 %) Avfallsservice AS (12,00 %) Lofoten Avfallsselskap IKS (5,00 %), and Finnmark Ressursselskap (2,00 %).
Over 60 000 tonnes of organic waste (food waste, sludge, fish waste, and more) from households and businesses from 41 municipalities are to be converted into around five million liters of biogas at a new factory in Skibotn.
The cost framework for the entire project was originally at NOK 300 million but has increased mainly due to the weakened krone exchange rate/currency.
In addition to biogas, valuable byproducts such as biocoal and bio-CO2 will also be produced.
Source: Rå Biopark
Biogas and natural gas
Natural gas is extracted from gas fields such as the Snøhvit field in the Barents Sea. To transport natural gas across long distances, it is cooled down to -162°C and to liquid form (LNG).
Today, natural gas is used in industries, shipping, and road transport, and it mostly replaces heating oil and diesel as an energy source. The climate savings compared to heating oil are about 25 percent lower CO2 emissions and nearly 100 percent reduction in NOx and sulfur emissions.
Since natural gas and biogas is the same molecule, businesses that are currently using natural gas can shift to biogas without making investments in new equipment.
Biogas is a gas that is created from bio residue materials such as food waste, biological industrial waste, sewage, livestock manure, and residues from agriculture.
Biogas creates energy from waste that would otherwise go to waste and is considered a renewable resource. Biogas is an important part of circular resource management and the circular economy.
Biogas can replace diesel in trucks and boats and heating oil in the industry.
Source: Barents NaturGass / Rå Biopark
This article was originally published in Norwegian and has been translated by Birgitte Annie Molid Martinussen.