Gasum plans to buy e-methane from Nordic-Ren Gas
SUMMARY
Nordic-Ren Gas is developing e-methane projects in the Finnish cities of Lahti and Kotka. [Image: Gasum]
By Shardul SharmaPOSTED IN:
Gasum has signed a letter of intent with Nordic-Ren Gas to purchase e-methane from the latter’s proposed e-methane plant projects in the Finnish cities of Lahti and Kotka, it said on March 5.
If an agreement is reached, Gasum will purchase all e-methane produced at the plants and distribute it to its customers. These two plants will be connected to the existing gas grid infrastructure. The e-methane is made with renewable electricity and biogenic carbon dioxide and can substantially reduce emissions in transport and industry.
The e-methane produced in Lahti and Kotka will be injected into the gas grid with the potential to be exported to Europe or liquefied for use as e-LNG in, for example, maritime transport.
According to Gasum, Nordic Ren-Gas has developed an operational and technical design for its power-to-gas plants to meet all the requirements of the EU Renewable Energy Directive on renewable liquid and gaseous fuels of non-biological origin (RFNBO) for its e-methane.
In January, Gasum and Nordic Ren-Gas inked the first offtake agreement on an e-methane plant in Tampere that will initially produce 160 gigawatt hours (GWh)/year of e-methane starting in 2026. The Lahti and Kotka plants will be constructed based on the model developed in the Tampere project.
The initial plan is to combine the Lahti and Kotka plants to produce 800 GWh/year of renewable e-methane. Gasum and Nordic Ren-gas will determine the realised offtake volumes together based on projected demand from end users. The Lahti and Kotka plants are both planned to be up and running by 2027.
E-methane is fully interchangeable with natural gas and biogas. When it is liquefied it is likewise fully interchangeable with LNG and liquified biogas (LBG, bio-LNG). This means that it can be transported through existing infrastructure – trucks, ships, pipelines – and directly used in assets currently running on natural gas or biogas.
Gasum said its goal is to bring yearly seven terawatt hours (7 TWh) of renewable gas, including biogas and e-methane, to market by 2027.
