Sweden's Scandinavian Biogas Fuels (SBF) is ramping up its production of green bunkers with a second plant in Skogn, Norway.
The world's biggest biogas producer is investing NOK 170m ($21m) in the factory outside Trondheim.
The idea is to supply domestic cruiseship and ferry operator Hurtigruten's fleet with liquid biogas (LBG), among other owners.
The Skogn II plant will produce 35 GWh of biogas from the third quarter of 2022.
SBF has been supplying LBG since 2018 from Skogn I, the world's biggest LBG refinery.
Customers queuing up
"The operations at Skogn have been very appreciated, and the customers are queuing up," Havard Wollan, SBF's business area manager for Norway, said.
"So, it feels very inspiring to be able to announce that we are now expanding the capacity of LBG. The customers are primarily customers who invest in green shipping and green road transport," he added.
All permits are in place for Skogn II, as well as an investment grant of NOK 48.6m from Norwegian state decarbonisation agency Enova.
SBF has deals in place with several other unnamed shipping companies.
Supplies of waste feedstock have also been lined up. LBG is mainly made from methane.
Finnish technology group Wartsila will supply the process plant.
Stockholm plant to be expanded
SBF has also won permission to expand a plant in Stockholm to produce LBG.
"Biogas is today the purest energy technology because it takes care of waste and converts it into energy. In addition, it can be applied to the internal combustion engines on the market without major modifications," SBF chief executive Matti Vikkula said.
SBF also has a facility in South Korea.
Total new investments of SEK 1.3bn ($155m) are planned in Sweden and Norway.
These will be financed by equity raised in the December 2020 Nasdaq Nordic initial public offering, as well as grants and new debt financing.
Green bonds and a revolving credit facility are being considered.
