Gasum aims to increase production at the Mäkikylä biogas plant, once the transfer of the plant is completed this June.
Finnish natural gas transmission system operator Gasum has acquired a Mäkikylä, a biogas plant in Kouvola, Finland, from water company Kouvolan Vesi.
With the investment, Gasum claims that it will significantly grow its production capacity at the plant. Increasing the amount of biogas is necessary to meet the emissions reduction targets of the country.
As per the acquisition terms between the two companies, the Mäkikylä biogas plant along with its business, including contracts, will be transferred to Gasum next June. The plant includes the biogas plant building and process equipment located in conjunction with Mäkikylä wastewater treatment plant.
Kouvalan Vesi CEO Timo Kyntäjä said: “The transaction now completed ends a process lasting several years during which we have sought an economically and functionally sustainable solution to our biogas plant operations, which are not part of our core business.”
As per Gasum, the biogas plant had been underperforming mainly due to its small processing capacity. The plant has a processing capacity of around 20,000 tonnes of biomass per year and is claimed to be the amount allowed by its permit and the company plans to invest in the plant’s development.
Gasum circular economy Finland director Ari Suomilammi said: “As a company we are committed to growing the supply of biogas as a renewable traffic fuel and as an enabler to achieving traffic emissions reduction targets. This requires increased production of biogas.
“The transaction will allow us to invest in the expansion of the Mäkikylä plant with the aim of increasing biogas production at the plant. We will also modernize the processes at the plant to bring them into line with today’s requirements.”
Gasum’s gas portfolio in Europe
Presently, the company owns 12 biogas plants in Finland and Sweden and is buying biogas from three partner plants, out of which the Mäkikylä plant is one. The company has also invested in building the construction of a biogas plant in Lohja (Finland) and in Nymölla (Sweden) and is also expanding the Turku biogas plant. The current biogas capacity of Gasum is around 650GWh a year.