1Vision Biogas AB announces the closing of the acquisition of St1 Nordic Oy’s biogas assets. 1Vision Biogas is a joint venture between St1, HitecVision and Aneo. 1Vision Biogas acquired earlier this year 100% ownership of Biokraft International AB, the leading producer of liquified biogas in the Nordic region. 1Vision Biogas integrates the two entities into one company with the ambition of becoming the leading biogas company in the Nordics, operating the entire biogas value chain from feedstock sourcing all the way to sales and distribution.
1Vision Biogas sees liquified biogas as a key growth opportunity within the energy transition. The growth company is aiming for 3TWh biomethane production and 6TWh biomethane sales by 2030, targeting heavy transportation, maritime and industrial applications. To achieve its goals, 1Vision Biogas is committed to investing more than EUR 1 billion in biogas production and distribution networks in the Nordic countries. With these acquisitions, the current production capacity of 1Vision Biogas is over 550 GWh and the combined sales of biomethane are approximately 1 TWh. In addition, there are several biogas growth projects in Sweden, Norway and Finland.
1Vision Biogas builds on strong expertise in energy transition
St1, HitecVision and Aneo joined forces in December last year with the aim of creating a leading biogas platform in the Nordics. The new Nordic biogas company consists of entities with complementary set-ups and builds on strong industrial logic capabilities. 1Vision Biogas will operate an end-to-end biogas value chain, from feedstock sourcing all the way to sales and distribution. St1's strong sales organization and network will continue the distribution of 1Vision Biogas’ products.
Biokraft has a strong upstream asset base with five biogas production and upgrading plants in Sweden and Norway and a logistics company. St1 has seven biogas production and upgrading units in Sweden, a network of compressed and liquified biogas stations together with bus depot refuelling points. In Sweden, St1 is already a leading biogas provider for the traffic segment. This acquisition announcement has no impact on the growth projects that both Biokraft and St1 are running in the Nordics.
HitecVision manages energy-focused private equity funds with a total committed capital base of EUR 8 billion, and it has an extensive track-record in developing energy companies in Europe. All new investment platforms from HitecVision’s funds will contribute to the energy transition.
Aneo is a Nordic renewable energy company that invests in renewable energy production, electrification, and energy efficiency, with roots in renewable energy production that span over 70 years.
“In this new company, St1 can accelerate biogas production growth and the extension of the distribution network to our customers even further. As a concept, biogas is the circular economy at its best. Renewable competitive fuel is generated by the digestion of organic waste. We see a lot of potential in increasing the use of liquefied biogas. Today, it is the quickest way to significantly reduce carbon emissions in heavy-duty transport. In the longer term, demand for biogas is expected to increase in shipping and heavy industry,” says Henrikki Talvitie, CEO of St1 Nordic Oy.
“Sustainable fuels are a key focus area for HitecVision’s renewable investment strategy. In 1Vision Biogas, we have established a solid partnership with experienced industrial partners. By combining Biokraft International AB and St1’s biogas business, we have created a great foundation for building a market-leading company in a very attractive segment, providing clean fuel to hard-to-abate sectors,” says Jan Harald Solstad, Senior Partner in HitecVision.
Miika Johansson has been appointed CEO of 1Vision Biogas AB. His current role is the Head of Renewable Energy and Strategy Business Unit and Group Management team member at St1 Nordic Oy. Miika will start in his new role at the beginning of November.
“It is a great honour to take the foundation of two great biogas companies and build it into the leading biogas player in the Nordics. We operate in Finland, Norway and Sweden, markets with great growth potential for biogas, but we will also look at the wider European market. We have a talented team and strong owners, and together we will build a unique biogas company,” says Miika Johansson.
Matti Vikkula, President and CEO of Biokraft International AB, has decided to retire, and he will remain as a senior advisor during the transition period.
Biogas technology is an existing solution to substantial emissions reductions
“Biogas is an important part of society’s energy transition. It is a concrete renewable energy solution with available technology, scalable production and competitive product. Liquified biogas production is a great example of the circular economy resulting in significant greenhouse gas emissions reductions in traffic, especially for heavy-duty transport. For example, manure as feedstock reduces not only emissions in transport but also agricultural emissions and the emissions reduction can even be higher than 100%,” says Miika Johansson.
In the future, there is also potential for recovery, storage and utilization of bio-CO2. The biogas business contributes to developing a Nordic energy system taking steps towards the EU climate targets.