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Cleaner tomorrow through efficient gas solutions

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In 2017, Gasum continued to take determined steps towards a cleaner tomorrow – Gasum has published financial review, company story and corporate responsibility report.

01.11.2018

Gasum subsidiary Skangas in agreement with Gothia Tanker Alliance to deliver LNG as fuel to new tankers

Gasum subsidiary Skangas entered into an agreement with parts of the Gothia Tanker Alliance to supply liquefied natural gas (LNG) as fuel. The new agreement comprises current as well as new vessels with LNG propulsion soon to come.

The main Swedish shipping companies that will get the advantage of the supply agreement with Skangas are Furetank Rederi AB, Erik Thun AB and Rederi AB Älvtank. These shipping companies have invested in total six new LNG fueled vessels and together with the existing Fure West they are all jointly operated by the Gothia Tanker Alliance.

The Swedish Shipowners’ Association is actively contributing to reduce any negative environmental impact of the shipping industry. Their goal is zero emissions within 2050.

“Investing in LNG fueled vessels contributes along these lines”, explains Lars Höglund, Managing Director of Furetank. “For newbuilds we focus on energy efficiency and innovations. Together with our choice of cleaner fuel we are experiencing a major reduction in our CO2 emissions, not to forget the reductions in particulate matters and NOX”, he concludes.

Fuel supply from land or off shore

Wherever a LNG vessel might need fuel Skangas will be delivering. The delivery chain consists of trailer trucks, extensively being used for bunkering operations in ports, bunkering from terminals, as well as Skangas’s bunker vessel Coralius. The bunkering ship-to-ship by Coralius may take place at anchorage off Gothenburg in Sweden, off Skaw in Denmark, off shore Norway or in ports during cargo operations.

“Skangas is very happy with the agreement and to continue our relationship with Furetank and the rest of the Gothia Tanker Alliance”, says Tommy Mattila, Director Sales and Marketing in Skangas. “Being trusted to supply LNG also for the future vessels is a confirmation that we are delivering as expected. We will continue investing and improving to meet ship owners’ demands and expectations,” he concludes.

Liquefied Natural Gas (LNG), is the cleanest available marine fuel, one that is rapidly becoming more commonly used as a cost-effective alternative. LNG is suitable for all vessel types, including ferries, passenger ships, tankers, bulk, supply and containerships. LNG offers several benefits by reducing local and global pollution. Switching to LNG completely removes SOx and particulates and reduces NOx emissions by up to 85%. In addition, LNG reduces CO2 emissions by at least 20%. Use of LNG as marine fuel result in compliance with current and forthcoming IMO and EU regulations. 

For further information, please contact:

Lars Höglund, Managing Director of Furetank
P: +46 705 74 96 41, lars.hoglund@furetank.se

Tommy Mattila, Director Sales and Marketing, Skangas
P: +358 40 581 9247, forname.lastname@skangas.com

Gothia Tanker Alliance is a leading European tanker network for coastal tankers. Our nine co-operation companies offer an even more comprehensive service network to our clients. Together the alliance provides a significantly increased tonnage capacity and vessel sizes. Our vision is to be recognized as industry leaders and our clients’ first and best choice by offering safe and sustainable cargo transportation in combination with reliable and smooth service. We can offer the optimum size vessel in the right position at the requested time. Our fleet consists of fifteen vessels between 5,000 and 10,000 dwt and 4 more to be delivered, twenty-four vessels between 10,000 and 40,000 dwt and 8 more to be delivered. www.gothiatankers.com.

Skangas is a leading provider of LNG to the Nordic market. The company delivers LNG to customers in the shipping, manufacturing and heavy transport sectors. Skangas assists its customers in reaching their environmental and energy objectives by offering an efficient and stable supply of LNG. Skangas is a 100% owned subsidiary of the Nordic energy company Gasum. 

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31.10.2018

Natural gas and biogas as part of action to reduce transport emissions

On October 24, 2018, the European Federation for Transport and Environment (T&E) published its report seeking to assess the climate impacts of the transport use of fossil natural gas. According to the T&E study, sustainably produced biogas is a good way of reducing emissions from transport. On the other hand, the report states that, when taking life-cycle emissions into account, the environmental impacts of the transport use of fossil gas are along similar lines to those of petroleum based fossil fuels.

We have participated in the debate on the topic in Brussels as well as in Finland because it is good to also include the Nordic perspective in the debate.

According to the T&E report, assessments of the environmental impacts of the use of fossil gas in transport should take emissions from the entire value chain better into account. According to the study, methane emissions from production and transport may considerably increase the life-cycle emissions of fossil gas.

Gas sector players have made a commitment to cutting methane emissions from the value chain. The required technology already exists, and players are reducing their methane emissions in the value chain. More extensive utilization of experience already available from areas such as North Sea gas fields will help cut methane emissions in the next few years. This is advantageous not only from the environmental but also from the business perspective.  As stated also in the T&E report, 40–50% of current methane emissions could be avoided with no net cost.

It should also be taken into account that it is not a simple task to determine the life-cycle emissions of natural gas. According to a study conducted this autumn by VTT Technical Research Centre of Finland for the Finnish Government, ”there is major variation in emissions from production chains depending on, for example, the technologies and fuels used in production and on transport distances and methods. Therefore it is almost impossible to determine a single all-encompassing emission figure.” The data for natural gas used in the T&E study is not directly applicable to Finland or the Nordic countries. Instead, the baseline and figures it is based on are very different. Therefore the life-cycle emissions of fossil transport fuel gas used in Finland should not be compared with the EU average.

Awareness of the environmental impacts of the natural gas supply chain and seeking to reduce emissions is one of Gasum's key corporate responsibility targets. According to a study conducted in 2015, consumption by Gasum’s customers accounts for 87.5%, Russian functions for 12.2% and natural gas transmission in Finland for 0.3% of the greenhouse gas emissions over the entire life cycle of the natural gas used in Finland. In recent years, Gasum has taken significant measures to reduce methane emissions from and improve the energy efficiency of the natural gas transmission network (including compressor stations). Energy-saving measures and environmental programs have resulted in the successful reduction of greenhouse gas emissions by 12% from the 2012 level.

Also as regards liquefied natural gas (LNG), the value chain of each player should be assessed instead of basing assessments on data such as EU averages. The largest LNG player in the Nordic countries, the Gasum subsidiary Skangas only uses electricity from renewable energy sources in its liquefaction process taking place in Risavika, Norway. Partly thanks to this, the life-cycle emissions of Norwegian LNG are around 30% below the EU average. In addition, it should be noted that gas engine technology for heavy-duty vehicles and marine transport has developed significantly in recent years, which has already reduced methane emission levels.

Transport is the sector where the most can be made out of the emission reduction potential offered by biogas

The T&E report regards sustainably produced biogas primarily as a good thing – presuming that no methane emissions are generated in the biogas production process. Various types of waste and manure in particular are viewed as the best raw materials for biogas production from the sustainability perspective. However, the report recommends that, given the limited raw materials potential, the use of biogas should focus on replacing fossil natural gas primarily in heating and industry.

It should be taken into consideration that, in the Nordic countries, the raw materials base used in biogas production is broad (including manure and agricultural biomass, biowaste and sludge, industry side streams, wood-based residue and by-product feedstocks). The widespread Nordic view is that the value of biogas is maximized specifically in the reduction of transport emissions where the selection of tools available for emission cuts is limited compared with the energy sector. Renewable biogas currently already accounts for around 50% of road fuel gas sold in Finland and in Sweden the share of biogas in transport has been raised through determined action to almost 90%.

The switch to gas-powered heavy-duty road transport currently taking place will be initially based on fossil LNG. The broad raw materials base suitable for biogas production, and Gasum’s investments in biogas liquefaction capacity in areas including Turku, Finland, and Nymölla, Sweden, will soon provide maximized access to liquefied biogas (LBG) for LNG-fueled heavy-duty vehicles, too. Of course this alone will not be a solution to the emission reduction targets, but it does provide players and consumers with one opportunity for significant cuts in emissions arising from their mobility.

More information:
Jussi Vainikka, Business Development Manager, Gasum
Tel.+358 553 3033, forname.lastname@gasum.com

Olga Väisänen, Vice President, Communications, Gasum
Tel. +358 40 554 0578, forname.lastname@gasum.com  

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24.10.2018

Gasum subsidiary Skangas delivered renewable Liquefied Biogas (LBG) to Nornickel Harjavalta and STEP

For the first time Nornickel Harjavalta and Suomen Teollisuuden Energiapalvelut (STEP) Oy received liquefied biogas (LBG) from Gasum subsidiary Skangas. Renewable liquefied biogas substantially improves the environmental footprint of the companies.

The LBG is used in Nornickel’s production of biohydrogen and for their energy production. Up to now Skangas has been supporting Nornickel with Liquefied Natural Gas (LNG). Nornickel Harjavalta’s goal is to continuously improve waste recycling. In addition, they are committed to reducing emission to air and water and minimizing disturbances.

“Using liquefied biogas is a natural development towards an even cleaner operation and environment,” says Marko Mikkola, Director Operations support & EHSQ, Nornickel Harjavalta. “Having replaced oil products with LNG in hydrogen production and bioenergy we are already significantly reducing our fossil CO2 emissions. As renewable LBG becomes increasingly available we will continue to improve our environmental footprint,” he concludes.

STEP received liquefied biogas for their bio steam boiler plant. Annually the steam boiler plant produces around 220,000 MWh of steam fueled by wood pellets. Wood pellets is the main fuel for STEP supported by back-up fuel of liquefied natural gas (LNG) from Skangas. Investing in the new steam boiler in 2016 STEP estimated an annual CO2 reduction of approximately 70,000 tons. This is since they changed their energy source from heavy oil to pellets and gas.

“We are extremely satisfied with the opportunity to use renewable gas in our energy production”, says Antti Kokko, Head of Sales and Business Development, STEP. “This is a step in the right direction and we welcome more biogas whenever possible,” he concludes.

“This is the first time we are supplying LBG to Norilsk and STEP”, says Jouni Bedda, Sales Manager in Skangas. “ LNG and LBG will continue to walk hand in hand as the availability of LBG on the market is on the rise.”

Because the LNG and LBG mainly consist of methane the existing LNG supply infrastructure can be used. Compared to oil products LNG removes SOx and particulate matters and reduces NOx emissions by up to 85%. In addition, LNG reduces CO2 emissions by at least 20%. LBG is like LNG, however, it is a renewable fuel made from 100% local feedstocks. Biogas is produced through the processing of various types of organic waste.

For further information please contact:

Marko Mikkola, Director Operations support & EHSQ, Nornickel Harjavalta 
tel. +358 50 384 3624, marko.mikkola@nornickel.fi

Antti Kokko, Head of Sales and Business Development, STEP
tel: +358 44 701 2350, antti.kokko@stepenergy.fi

Jouni Bedda, Sales Manager, Skangas Oy
tel. +358 40 744 2870, Jouni.Bedda@skangas.com

Nornickel Harjavalta is a significant and diverse refiner of nickel metals and chemicals. Our job is to produce the base and precious metals needed by society in an efficient and safe manner. We make versatile, high quality nickel products that are manufactured to meet customer needs. Our products help make technological advances and developments a reality. Our values guide our business and work activities and form the foundation for our operations. nornickel.fi

Suomen Teollisuuden Energiapalvelut - STEP Oy offers sustainable energy solutions to industrial customers in compliance with partnership principles. The clients’ needs, energy efficiency and customized services are in a central position in all energy solutions offered by the company, combining local and international know-how. STEP is owned by Pori Energia (49%) and Veolia (51%). www.stepenergy.fi

Skangas is a leading provider of LNG to the Nordic market. The company delivers LNG to customers in the shipping, manufacturing and heavy transport sectors. Skangas assists its customers in reaching their environmental and energy objectives by offering an efficient and stable supply of LNG. Skangas is a 100% owned subsidiary of the Finnish natural gas expert Gasum. skangas.com.

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