PROFILE
BIOKRAFT AS
Photo C.Hatrem
Photo: Kenneth Kvande
Left: From the announcement at Skogn July 1st 2020, from Left to Right: Nils Kristian Nakstad, Enova, Håvard Wollan, and Norway’s Minister of Climate and Environment Sveinung Rotevatn.
economy for them. Additionally, it helps to reduce the carbon footprint of food production, which is gaining more importance in the Norwegian agricultural sector every year.” Founded in 2009 by a consortium of experienced entrepreneurs, Biokraft was established with the ambition to build a new, modern, industrial venture producing biofuels. The company’s first factory was built in 2011 at Selva in Mid-Norway and was designed to produce bio-oil. After selling the Selva facility in 2013, Biokraft has since focused on LBG production. The construction of the plant at Skogn marked a major milestone in this journey and since its commission, the facility’s output has not disappointed. “The first LBG produced at the Skogn factory arrived in September 2018,” Håvard reports. “Since then, throughout 2019 and 2020, Biokraft has delivered positive EBITDA every month. Driven by what the Skogn facility is offering us, we ended the first quarter of 2020 with a record high EBITDA and profit before tax.” As one might expect, a project as complex and sizable as construction of the world’s largest
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ENERGY,OIL&GAS
energy-oil-gas.com
During the most recent years, we have seen new and substantial interest from biogas-focused private equity firms and institutional investors. My own belief is that the green transition will only take place when the financial sector comes fully on board biogas plant required support from a strong network of vendors, contractors, and partners. Fortunately for Biokraft, the firm could rely on its strong relationship with Wärtsilä, a smart technologies and lifecycle solutions company renowned for its work in energy markets. “Wärtsilä delivered the processes for both upgrading and liquefying the biogas at our Skogn factory,” Håvard reveals. “If these processes do not work properly, we will not have any LBG to sell and deliver to our customers, so it’s been great to work with a company we know we can rely on.” Thanks to the support of companies like Wärtsilä, and the subsequent success of the Skogn facility, Biokraft has been able to secure contracts with companies like Hurtigruten. The business partnered with the Norweigan cruise line in 2019 as part of a record-breaking multi-year deal in which Biokraft agreed to supply the firm with climate-neutral LBG to power its ships. The fuel will be created using organic waste. “For Hurtigruten, it means they can provide state-of-the-art cruise operations with a