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What our customers thing: energy company Gasum
WHAT OUR CUSTOMERS THINK
When the Finnish energy company Gasum wanted to establish liquid biogas filling stations in Sweden, they needed help. At IVL Swedish Environmental Research Institute, they found Sweden’s leading experts in the field, who provided them with expert support to build 16 stations around the country in a short space of time. And there are more on the way.
“Being able to hand over important elements to a party that possesses leading-edge expertise has felt incredibly reassuring. For us, the work that Anders has done has been crucial when it comes to developing this part of our business plan,” said Mikael Antonsson, area manager for heavy traffic at Gasum.
Mikael Antonsson discusses the fact that Gasum has built 16 filling stations for liquid biogas and that they are planning to build at least a hundred more, with IVL Swedish Environmental Research Institute’s biogas expert Anders Hjort playing a central role in this work.
And there are more on the way, because interest in liquid biogas is increasing dramatically, according to Mikael Antonsson.
“It’s a kind of ‘Greta effect’. The only thing hindering our expansion now is the fact that it can take a long time and be difficult to find land to build the stations on,” said Mikael Antonsson. Anders Hjort was recruited to IVL Swedish Environmental Research Institute five years ago as part of a strategic drive to build up expertise regarding biogas. At the same time, IVL purchased the company that Anders Hjort was working at, thereby acquiring additional experts in the field of biogas. This has significantly strengthened IVL’s expertise. Anders Hjort has been involved in countless biogas-related activities and has long had established contacts with Gasum.
Gasum is one of the Finnish state’s energy companies in the Nordic energy market, primarily in the gas sector. Liquid biogas, or LBG as it is usually abbreviated, is particularly suitable for trucks. LBG consists of methane from the digestion of food waste and other waste, which is cooled down to minus 160°C. At this temperature, the gas becomes liquid and has higher density. Liquid biogas is considered to be one of the most climate-friendly fuels.
The problem is that, so far, there aren’t many filling stations that offer LBG. And as long as there are no filling stations, there are also no hauliers that are prepared to replace their fleet of vehicles with trucks powered by this fuel.
“It’s a chicken and egg situation. Someone has to go first. And so we decided to start construction before the market existed,” said Mikael Antonsson.
But building biogas stations is not a straightforward process, especially not initially. Investment support is needed to begin with, as otherwise it will not be financially viable. A biogas filling station is considerably more expensive to build than one for diesel. The Swedish Environmental Protection Agency is offering financial support that can be applied for, known as the Climate Leap, but the procedure is complicated and requires expertise to complete.
Anders Hjort and his co-worker Marita Linné at IVL Swedish Environmental Research Institute have formulated the applications to the authorities and managed the contacts with them. According to Mikael Antonsson, leading-edge expertise is required to conduct the necessary discussions and dialogue with the authorities.
Mikael Antonsson, area manager for heavy traffic at Gasum
“We’ve let Anders take care of it. It’s been reassuring for us to know that this has been managed properly. We appreciate his professionalism. He delivers what he promises and is genuinely knowledgeable about all aspects of the process. It’s absolutely essential for us to receive this support.”
And the support that Gasum has received has amounted to enormous sums.
“In recent years, we have received around half a billion kronor in support from various authorities. Anders hasn’t helped us with all of these, but certainly with most of them,” says Mikael Antonsson. For example, Gasum received MSEK 200 in investment support from the Swedish Environmental Protection Agency to build the filling stations. In less than two years, 16 had been constructed.
Anders Hjort:
“This is basically all the LBG filling stations in Sweden. Things tend to go pretty well when Gasum applies for support for this. I’ve been working with them for a long time and we have a framework agreement with them.”
But filling stations are not enough – there have to be trucks that can refuel there, and there are very few of these as yet. A truck has an average lifespan of six to seven years, and it costs around half a million kronor more to buy a new truck that is powered by liquid biogas than a diesel-powered one.
A small haulier will rarely dare to make such an investment. Most of the hauliers in Sweden are small companies with an average of 3.5 trucks per company. However, to encourage the hauliers to take the chance of buying these expensive yet climate-friendly trucks, there is another form of investment support where up to 60 percent of the additional cost is covered.
To date, Anders Hjort has handled applications for 900 trucks, of which 600 have been granted, according to Mikael Antonsson. On its website, Gasum markets the fact that it helps hauliers to apply for support through the Climate Leap free of charge.
The reason for the Swedish Environmental Protection Agency offering this generous support is due to the goal of a climate-neutral Sweden by 2045 and the transition that is therefore necessary. The investments that provide the greatest possible reduction in greenhouse gas emissions per invested krona receive support. And even though there may be a shortage of waste and residual production in future, biogas is considered an important fossil-free energy source.
And we’re talking about large amounts of support.
“That’s true, but the money is well invested and socio-economically defensible,” says Anders Hjort.
Anders Hjort emphasises that biogas can’t do everything, but that other renewable fuels and changing habits are also needed to achieve the climate goal.
Especially if you also take into account the fact that there are competing areas of use for biogas, such as industry and shipping.
“Biogas should therefore be viewed as a complement that, together with other renewable fuels, powertrains and alternative mobility solutions, can replace the use of fossil fuels in the transport sector,” says Anders Hjort. To secure the applications for support, it is necessary to have in-depth knowledge of the subject and also some kind of street smartness, according to Mikael Antonsson at Gasum. You have to be able to talk, not only with the authorities, but also with these often small hauliers to persuade them to provide data. For the hauliers, the applications are viewed more as time-consuming rather than complicated. But time is money for a small business.
And in contacts with the authorities, the authorities appreciate someone who is familiar with the regulations and who understands why they are imposing certain requirements.
“You have to respect the fact that they have a set of regulations specifying why the situation looks the way it does. It’s also about being transparent and not secretive. And you also need to have a comprehensive understanding of what you’re doing,” says Mikael Antonsson.
Gasum has a framework agreement with IVL Swedish Environmental Research Institute, and also needs help with other elements. This can be anything from investigations to monitoring the outside world, and almost always in relation to biogas.
“We usually tend to hire Anders. This is an easy option because everything, such as his hourly rate and other issues, has already been negotiated,” says Mikael Antonsson.
The 16 filling stations are currently spread across the country, with a slight concentration in the Mälardalen valley and to the south, although there are also a couple of stations in Norrland. This is just the beginning of Gasum’s investment. Another 50 or so will be built within about a year, of which half will be in Sweden,” says Mikael Antonsson.
“But it’s not enough. In my estimation, there will soon be a need for about 200 stations around the country,” says Mikael Antonsson.
ABOUT GASUM
A 100 percent state-owned company. Of its shares, 73.5 percent are owned by the state-owned Gasonia Oy and 26.5 percent directly by the Finnish state. Gasum’s turnover in 2019 amounted to MEUR 1,128.
The company describes itself as follows: “We are experts in the Nordic gas sector and the energy market. Together with our partners, we are promoting the development towards a carbon-neutral future. We are working for a more environmentally friendly future through efficient gas solutions.”
