St1 and Valio join forces to drive renewable biogas production from dairy farm by-products

Suomen Lantakaasu Oy was founded in 2022 as a joint venture between St1 and Valio, a Finnish dairy and food company. The joint venture aims to produce renewable liquefied biogas from the manure and other agricultural by-products of Finnish dairy farms, which can be utilised as a fuel for heavy transport. The company is currently planning the construction of biogas and liquefaction plants in Upper Savo and Nurmo, which are scheduled to be completed in 2026. There are also plans for new biogas projects, for example in Ostrobothnia. The ultimate goal is to build a one-terawatt-hour liquefied biogas production network in Finland. This corresponds to the annual fuel requirement of about 1,600 heavy-duty combination vehicles.

Suomen Lantakaasu Oy aims to connect the entire value chain, from the network of farmers to biogas production, liquefaction and distribution. Biogas produced from manure creates significant climate benefits and strengthens Finland’s energy and fuel self-sufficiency.

“Valio has long been implementing an ambitious climate program that aims to achieve a carbon-neutral milk chain by 2035. A key part of our goal is the production of manure-based biogas. The establishment of Suomen Lantakaasu Oy together with St1 significantly accelerates not only our goal, but also the business of manure-based biogas in Finland,” says Janika Keinänen, who is responsible for the biogas projects at Valio.
 Janika Keinanen

Strength of the collaboration


The strength of the co-operation between St1 and Valio lies in the understanding of the entire manure-based biogas value chain, from the emergence of manure on Finnish dairy farms to the distribution and use of biogas. 

“Valio has a strong base in agriculture and is owned by approximately 3,400 Finnish milk producers through cooperatives. Together with St1, we develop and build biogas production and liquefaction plants, and St1 distributes the final product to heavy traffic through its own distribution network. At Valio, we are committed to also making increasing use of biogas in our own collection and distribution logistics,” says Janika. 

“This partnership brings Valio closer to the goal of a carbon-neutral milk chain, building new, profitable business and creating better operating conditions for our owners, Finnish milk producers”, says Janika. 
By participating in biogas production, farms can, among other things, reduce emissions from manure treatment and improve nutrient recycling. In addition, these activities bring a number of operational and cost benefits to milk producers, such as the possibility to reduce purchases of fertilisers and reduce their own manure logistics, as well as improving yields.

When each production facility collects feedstock from its local area, the transport distance of the feedstock is kept as short as possible. Suomen Lantakaasu Oy collects manure from the farms and returns the biofertiliser generated in biogas production back to the farms. The nitrogen fertiliser bill on the farm is lower, as the amount of soluble nitrogen in the biofertiliser is up to 20–30% higher than in manure.
 

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