NIB co-finances biogas production in Eskilstuna, Sweden

NIB and Eskilstuna Biogas AB have signed a seven-year loan to co-finance the construction of a new biogas production plant in a facility near Eskilstuna, Sweden.

The EUR 15 million loan is supported by the European Union under the InvestEU programme and is eligible under NIB’s InvestEU Framework Operation Green Mobility and Transport.

Eskilstuna Biogas was established with the aim of building and operating a greenfield biogas facility in Eskilstuna. The facility will produce liquefied biogas for use as fuel for city busses and ferries. The plant, currently under construction, will actively reduce greenhouse gas (GHG) emissions by producing biogas that replaces fossil fuels.

The plant will have a capacity of 150,000 tonnes feedstock per year and an estimated production capacity of up to 5,450 tonnes of liquefied biogas. The company expects the plant to start operations in the first half of 2027.

“We are very excited to finally start the construction of the Eskilstuna Biogas plant with a distinguished group of strategic investors, valued municipality, and local farming partners. We are also looking forward to contributing to a 10% CO2 reduction in the region and leading the way for other necessary green initiatives in the years to come,” says Kaj Wågdahl, Chairman of Eskilstuna Biogas AB.

The company sources its feedstock primarily from local farmers in the form of manure, supplemented by food waste from the Eskilstuna municipality.

“Adopting technologies that replace fossil fuels is one of the greatest challenges of this decade. Eskilstuna Biogas sets a great example by using available resources to tackle the challenges of climate change and waste management, all of which contribute to Sweden’s 2045 net-zero target,” says Jeanette Vitasp, NIB’s Head of Lending.

Eskilstuna Biogas AB is a company formed to produce liquefied biogas and is owned by Andion, Equitix Next Generation Fund, and Rederi AB Gotland (Gotlandsbolaget).

The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of EUR 26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least EUR 372 billion in additional investment. Read more at NIB and InvestEU. 

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies S&P Global Ratings and Moody’s.

For further information, please contact
Tore Emanuelsson, Senior Banker, at +358 50 4316436, tore.emanuelsson@nib.int

Oliver Mølvang Hermansen, Associate Communications Officer, at +358 10 618 0225, oliver.hermansen@nib.int