• To undertake further research on the supply and demand sides.
• To identify ways how to accelerate the demand for biogas in the Finnish transportation system.
• To raise consumer awareness and improve uptake of biogas with target groups (taxi businesses, refuse collection companies, food and beverage transport businesses, and people who drive long distances to work).
• To plan a biogas production network.
• To design a biogas service station network.
• To boost new business models and investments in the biogas sector.

• A biogas market survey (demand side), whereby 100 businesses were interviewed regarding their views and potential needs for biogas in transport. In addition, public sector bodies of the region were consulted on biogas infrastructure development opportunities.
• A biomass survey (supply side) was conducted with 177 farms, the food industry, other industries and municipal wastewater treatment stations to assess the potential availability of biomass. The findings informed the calculation of the required volumes of biomass and the identification of optimal locations for biogas plants.
• Feasibility studies regarding alternative production techniques and biogas plant locations were conducted. This included comparing wet and dry fermentation techniques and their profitability and exploring five alternative biogas plant models comprising four producing compressed biogas (CBG) and one producing liquid biogas (LBG).

The awareness raising activities involved:

• Four online events with specific target groups with farms, the manufacturing and transport industry, local municipalities from the local development point of view, and public authorities in charge of licensing biogas plants.
• Three face-to-face events targeted at local consumers focusing on biogas cars and their testing results.
• Further activities comprised of:
• Numerous negotiations with businesses organised to explore the investment potential for the building of a biogas plant in the municipality of Leppävirta.
• Planning of the biogas service station network and designing new business models.

• The seven awareness raising events had 40 -100 participants each.
• In terms of supply, the biogas survey showed that from the 177 interviewed farms, 95% were interested in selling grass, straw or hay for biogas production. The feasibility studies assumed that biomass won’t be transported further than 25km from any farm.
• New business models were developed both in terms of biogas production and biogas service stations.
• In terms of potential demand, the models estimated that there could be an energy market of around 40 GWh of biogas in the North Savo transport sector (equivalent to 4 million litres of diesel).
• The plans for a biogas plant investment in the municipality of Leppävirta have progressed well. The likelihood that the investment of one new biogas service station might go ahead soon is high. This investment might be led by a company that already has two biogas stations in the neighbouring region of North Carelia.

The results must be seen in the wider context: The biogas industry has a big potential of creating new jobs in the Finnish countryside. In the summer of 2023, 40 biogas plants are being planned across the country generating a capacity of around 700 GWh. It is estimated that this would create approximately 700 new permanent jobs.

• When assessing the potential for renewable energy production, it is important to look at the demand and supply factors at the same time and to develop them hand-in-hand.
• The feasibility of developing the biogas market is mostly dependent on the market selling price of biogas. Profitability is the key for any Green Deal investment. However, supporting the development of the industry also depends on policy priorities.
• Finnish law has required that at least 12% of car gasoline must come from renewable sources by 2022. This has guaranteed a market for LBG. In 2023, the minimum share has risen to 13.5%. However, in future, this is subject to political decisions.

“The biggest success factor of the project was that it looked at the whole value chain: from biogas producing farms to delivery services to private car owners. When all parts of the chain benefit from added value, the green transition becomes possible. We also selected the project expert services bearing this in mind: one company was specialised in agriculture and biogas production and the other on the demand and business modelling side.”

Sari Tulila, Project Manager