Media releases and news

The grocery store chain Lidl and the energy company Gasum are partnering to promote the circular economy. As part of their collaboration, Lidl will deliver its stores’ biowaste to biogas plants where they are used to produce environmentally friendly biogas – renewable and local energy that can be utilized in transport.

”Grocery stores can also implement the circular economy by producing renewable energy from biowaste generated by them. For example, when biowaste is used as a feedstock in biogas production, it can be recovered efficiently and used by the enterprise as energy in its operations,” says Jani Arala, Senior Manager, Sales, Road Fuels, from Gasum.

Lidl has also started using a truck powered by liquefied biogas that will be fueled by liquefied biogas (LBG) produced from Lidl stores’ own waste. 

”The biogas-powered tractor unit is an excellent addition to our fleet: we’re able to deliver goods with low emissions and drivers appreciate the low noise level of the tractor unit. Based on our experiences so far, we may increase our gas-fueled stock quite rapidly,” says Eeva Virtanen, CEO, Antiokia Oy, the transport company that owns the vehicle running deliveries for Lidl.

Large emission cuts with liquefied biogas

Using environmentally friendly biogas to fuel vehicles makes it possible to cut the greenhouse gas emissions generated over the fuel life cycle by up to 85% compared with traditional fuels. The LBG-powered truck will help Lidl reduce its emissions by an annual total of up to 193 tonnes. One tonne of CO2 emissions equates approximately to driving a diesel-fueled estate car for 7,500 km – the distance from Helsinki to Paris and back.

”The new biogas truck is first used for grocery store deliveries from the Janakkala and later mainly from the Järvenpää distribution center. We’re happy to gain access to a new-generation low-emission transport fleet. This cooperation supports our investments in environmental friendliness and the efficient utilization of recycled fractions,” says Lidl Project Manager Anna Liitiäinen.

Renewable biogas is produced from feedstocks including food waste generated in homes and retail outlets, sewage sludge and industrial by-products. Biogas production also represents the circular economy at its best as the organic matter created as a by-product can be utilized as environmentally friendly recycled nutrients by local farms.

“Delivery and heavy-duty road vehicles are responsible for more than a quarter of road transport emissions in the EU. Depending on the size class, the annual emissions of a single tractor unit correspond to those of around 40–50 cars. LBG enables a major reduction in emissions. To achieve cuts in emissions from heavy-duty road transport, we need forerunners like Lidl,” Arala points out.

Gasum is currently investing in the construction and opening of 50 new gas filling stations for heavy-duty vehicles in Finland, Sweden and Norway by the beginning of the 2020s. The stations will provide heavy-duty transport with support for mobility fueled by low-emission gas in the Nordic countries.

Owned by the City of Vantaa, in Finland Vantti will start using four gas-powered Iveco Daily vans and use low-emission biogas to fuel the vehicles. Vantti provides meal, cleaning, facility, transport as well as lobby and security services for the City of Vantaa. Mail and package pickups and deliveries cover the distribution area of more than 200 City of Vantaa units. The biogas-fueled vans were chosen specifically because of their environmental friendliness. 

“The City of Vantaa aims to be carbon neutral by 2030 and we want to be forerunners and lead the way to reach this aim. These cost-effective biogas vehicles will help us cut carbon dioxide and fine particulate emissions,” says Jari Mielonen, Service Manager, Transport Services, Vantti.

“Consideration for the environment and sustainable development are important values for us, and driving on Finnish biogas represents this precisely,” Mielonen continues.

Biogas is a low-emission and renewable fuel produced from feedstocks such as biodegradable waste from households, shops and industry. Biogas can be used for purposes including heat and electricity production and as a transport fuel. In transport use, biogas enables greenhouse gas emission reductions of up to 85% compared with traditional fuels. In addition, biogas only generates a fraction of local emissions such as nitrogen oxide and fine particulate emissions.

“Gas vehicles are well-suited for use by local authorities as they support their environmental targets and strategies. They are also in the same price range as gasoline- and diesel-fueled vehicles. Because biogas is also produced from household biowaste, the City’s vehicles could in principle be fueled by local residents’ biowaste, which represents the circular economy at its best. For example, sewage sludge from Western Vantaa is used at the Suomenoja biogas plant to produce biogas that Vantti uses to fuel its gas vehicles,” says Gasum Sales Manager Heidi Kuoppala.

"Our product strategy at IVECO is to provide our customers with vehicles that enable them to be more sustainable – for both the environment and their bottom line. We’re the only manufacturer that offers a full range of gas models from light commercial vehicles to heavy-duty trucks and buses. The IVECO Daily vans now delivered to Vantti are equipped with Hi-Matic automatic transmission, and this model was voted International Van of the Year 2018,” says Raimo Haavikko, Key Account, Sales, Iveco Finland.

Gasum is committed to expanding the gas filling station network by 35 new stations in the next few years. The latest filling station was opened in conjunction with the Vantaa IKEA store in September. Stations are also being planned around Finland for cities including Kuopio, Lahti, Oulu and Seinäjoki.

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.