LNG

RenEco Ltd of the UK has joined with Dutch company Nordsol to establish a bio-liquefied natural gas plant to produce fuel from waste and targeting customers in the truck transportation sector.

Danish companies Makeen Energy and BB Bioenergi have signed an agreement on building a new liquefaction plant to make liquefied biogas from waste as Northeast Europe leads biogas developments that have attracted takeovers by energy majors.

Makeen and BB Bioenergi plan to construct the biogas liquefaction facility in North Denmark.

The facility will be added to BB Bioenergi’s existing biogas plant to convert the biogas to liquid form and to sell as fuel.

Denmark-based engineering company Makeen Energy will cooperate with BB Bioenergi to produce liquefied biogas for trucking transportation and industry.

Biogas technology

“By integrating Makeen Energy’s technology for liquefaction of biogas into their biogas plant in North Denmark, BB Bioenergi will offer an easily transportable and CO2-reducing alternative to diesel and other fossil fuels to its customers,” the companies explained.

“BB Bioenergi’s ambition is to create the biogas plant of the future in which the liquefaction process is partly powered by energy that the plant itself generates from waste materials from the production of biogas by putting it through a pyrolysis facility on-site,” they added.

Aside from the liquefaction of biogas, BB Bioenergi also aims to collect and liquefy the carbon-dioxide from the biogas plant.

They stated that the goal of the collaboration was to create a “visionary biogas plant” that can show the way forward for biogas production in Denmark.

“We wanted a local partner and not just a supplier - someone with expertise within the field who understands our needs and can assist us in both current and future challenges in our sector,” said Daniel Overgaard Pedersen, Chief Executive of BB Bioenergi.

“I am happy to have found that in Makeen Energy and I really look forward to working together,” the CEO added.

Frej Olsen, Head of the Cryo division at Makeen, said that when he heard BB Bioenergi explaining its vision he felt it was a project that made sense.

Future demand

“The fact that they chose our technology for their new plant makes us very proud, and it shows how valuable solutions of this kind are in accommodating the energy demands of the future,” Olsen added.

Analysts note the energy majors have been targeting European biogas companies producing fuel from agricultural, industrial and household waste with Denmark being one of the main biogas development areas in Northwest Europe.

A Shell subsidiary in February 2023 completed the $2 billion acquisition of Europe’s largest renewable natural gas (RNG) company, Nature Energy Biogas of Denmark.

Nature Energy established its first biogas plant in Denmark in 2015 and at the time of the takeover had 14 operating plants with associated infrastructure, feedstock arrangements and production of around 6.5 million MMBtu per annum.

UK major BP has agreed to acquire Archaea Energy of Houston in Texas for $4.1 billion, comprising $3.3Bln in cash as well as around $800 million of net debt, to increase its presence in the bio-natural gas fuel sector.

Clean Energy Fuels Corp., the California-based supplier of liquefied natural gas made from waste and with 540 filling stations across the US and Canada, is expanding its production and supplies of transportation fuel to trucking fleets, city buses and refuse trucks across America.

Clean Energy Fuels Corp. of the US has joined with UK major BP to add cow manure to the global efforts to curb carbon-dioxide emissions in the form of liquefied natural gas made from waste.

Golar LNG Ltd, the operator of conventional carriers, floating import and export terminals and a power affiliate backed by its fleet of 27 ships, is expanding its floating LNG relationship with US processing technology firm Black and Veatch into activities such as “green” LNG and hydrogen.

Golar offers its experience of delivering and operating low-cost floating LNG infrastructure while B&V, based in Overland Park in Kansas, is a leading provider of LNG technology, particularly for topsides of floating LNG production hulls.

“Within 2020, Golar and B&V intend to jointly publish a ‘thought leadership paper’ on our first area of interest for collaboration, floating ammonia production with carbon capture and storage (Floating Blue Ammonia),” said a statement.

Golar also operates with its Golar LNG Partners affiliate whose fleet comprises 10 vessels, including conventional carriers, FSRUs and the converted floating liquefaction hull the “Golar Hilli Episeyo” operating offshore Cameroon. Another hull of an older LNG carrier is being converted for an FLNG project offshore Mauritania and Senegal in West Africa.

In subsequent months, Golar and B&V intend to focus on the technical and commercial viability of the most prospective floating applications of the green and blue technologies and areas of interest they intend to investigate.

Any project development and implementation that followed the initial studies would be subject to a separate commercial agreement between the two companies.

“Replacement of coal, fuel oil and diesel with cleaner burning LNG represents one of the easiest and most cost-effective near-term steps to decarbonize the worlds energy mix,” explained Golar Chief Executive Iain Ross.

Golar, whose shareholders include more than 15 major global investment banks and funds, many based in New York, also has a joint venture, formerly known as Golar Power but now called Hygo Energy Transition, with the fund Stonepeak Infrastructure Partners.

Its activities are centred on northeast Brazil, including a project in Sergipe, the smallest Brazilian state.

Hygo Energy has also signed an accord with the Brazilian state government of Pernambuco to develop an LNG import terminal in the Port of Suape.

Additionally, Hygo Energy recently appointed a new Chief Executive to replace the previous incumbent who decided to step down after being caught up in a Brazilian corruption investigation.

Hygo Energy subsequently named Paul Hanrahan, the former President and CEO of power producer and LNG terminal owner AES Corp. from 2002 to 2011, as the new CEO to replace Eduardo Antonello.

Golar LNG CEO Ross explained that the shipping company and Hygo Energy were well positioned to expand on their quick delivery infrastructure solutions and emerging use of bio LNG, made from waste flows.

Ross added that his company has a history of championing and delivering solutions to problems in its industry, and he cited the Environmental, Social, and Corporate Governance (ESG) agenda, which is the mantra that is now part of the investment creed of the “green” banking community on Wall Street.

“Golar looks forward to working with a likeminded and equally capable partner, in the field of floating ammonia and hydrogen production, carbon capture, and other decarbonisation initiatives,” stated Ross.

Hoe Wai Cheong, President of Black & Veatch’s oil and gas business, said the new collaboration builds on years of delivering commercial and technology innovation with Golar in monetizing natural gas reserves.

“Given hydrogen and ammonia’s use in many energy-intensive industries we can make meaningful progress in lowering the carbon footprint and help these industries meet new sustainability commitments,” stated the head of B&V oil and gas.