St1 Biokraft, a leading biomethane player in the Nordic region, has signed an agreement to acquire Sweden’s Södra Hallands Kraft Biogas for an undisclosed fee, increasing its production capacity by 25 gigawatt hours (GWh).
The deal comprises a production facility in Hov outside Laholm where St1 Biokraft already owns and operates an upgrading plant in the same property.
St1 Biokraft currently owns and operates 12 production and upgrading facilities in Sweden, Norway and South Korea, producing approximately 550 GWh of biogas.
In addition, it has two plants under construction in Finland and is in the process of completing another in Mönsterås, Sweden.
The company also has a growing network of filling stations for compressed and liquefied biogas in Sweden and Finland.
Miika Johansson, CEO of St1 Biokraft, said the company is aiming for three terawatt hours (TWh) of own production by 2030 – and acquiring Södra Hallands Kraft Biogas brings it a step closer to that goal.
“The plant is a great fit for our portfolio – we know it well, having operated the upgrading facility since 2006. Alongside our existing facilities in Falkenberg and Söderåsen and our planned production in Skånes Fagerhult, this strengthens our commitment to the local circular economy and delivering renewable energy to our customers,” he said.
The biogas plant in Hov was built in 1992 as part of an environmental project to improve water quality in Laholm Bay. Under the deal, it will be rebranded St1 Biokraft Laholm.
Since then, it has been developed through several extensions and reconstructions. The gas upgrade was first built in 2000 and the biomethane has since been sold as vehicle gas on the market.
“Biomethane is a competitive renewable fuel that contributes to major emission reductions, especially in the transport sector,” added Johansson. “A prerequisite for the green transition is that there is biomethane and infrastructure available on the market. Our ambition is to increase that availability to enable more companies and industries to make the transition.”
Södra Hallands Kraft Economic Association, which sold the production unit to St1 Biokraft, said it would now focus more on its core business: operating the electricity grid, electricity trading, and energy services in southern Halland.
