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Alternoil and GrønGas to expand value chain for sustainable fuel alternative

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LNG Industry,


Alternoil GmbH, based in Germany, and biogas plant operator, GrønGas A/S, from Denmark, have signed a long-term and exclusive supply agreement for waste-derived bio-LNG to further increase the availability of Alternoil's renewable fuel, REEFUEL. Together, the companies aim to master the transformation to a climate-friendly transport sector.

Alternoil has set itself the goal of making an important contribution to the decarbonisation of heavy-duty transport. Since the end of 2020, the company has been providing the transport industry with the climate-friendly fuel alternative REEFUEL (bio-LNG and e-LNG) through its nationwide network of filling stations. The 100% renewable fuel is produced from green hydrogen generated by wind energy and biomethane from certified organic waste processes.

Alternoil's exclusive annual purchase of the total production volume of bio-LNG from GrønGas will further increase the availability of REEFUEL throughout Alternoil's filling-station-network. According to Alternoil GmbH, this is a scaling measure that is a clear response to the market developments. By using Alternoil's renewable fuel, companies can significantly reduce their carbon dioxide emissions in the transport of heavy goods and thus demonstrably improve their company's carbon footprint.

“The transformation of the transport sector and the increasing demand for bio-LNG and e-LNG in heavy-duty transport not only requires the continuous increase of our REEFUEL volumes and the expansion of our refuelling infrastructure, but also reliable and long-term partnerships along the entire value chain. We are pleased to have GrønGas as another strong partner by our side to jointly advance the decarbonisation of heavy-duty transport and to offer our customers a sustainable fuel alternative,” said Alexander Renz, Managing Director of Alternoil GmbH.

GrønGas is also looking forward to starting the new collaboration, which provides new growth opportunities because Germany is well ahead with the utilisation of bio-LNG in the transport sector, according to Allan K. Olesen, CEO of GrønGas A/S.

Olesen said: “The agreement with Alternoil is an exciting next step for GrønGas, and we are very much looking forward to supplying bio-LNG, which will support the conversion of carbon dioxide-heavy transport. Germany is well ahead in terms of the utilisation of waste-based biofuels in the transport sector. It is such an approach that creates innovative solutions such as REEFUEL, where fossil fuel is re-placed by bio-LNG.”

In the coming years, the purchasing volume of REEFUEL will be further expanded in line with the growth of the market in Germany. Alternoil already provides the renewable fuel alternative through a network of filling stations in Germany. By 2030, Alternoil and its partners plan to achieve climate neutrality for over 50 000 heavy-duty trucks by developing additional waste-to-energy projects.

To save even more carbon dioxide along the value chain in the near future and in response to market developments, Alternoil GmbH is currently participating as a joint venture partner in the construction and operation of the REEFUELERY, one of the world's largest liquefaction plants for biological and synthetic fuels, located in the heart of Germany. The plant is scheduled to commence operations in 2024.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22062023/alternoil-and-grngas-to-expand-value-chain-for-sustainable-fuel-alternative/

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