Swedish agricultural co-operative Lantmännen is establishing a biogas division to maximise the value of organic residual streams from its operations.
The co-op already processes grain and circular residues from the food industry into sustainable biofuels, green chemicals and raw materials for feed and food production.
“We see great potential in biogas and will now continue to investigate the possibilities for development in the area,” said Lars-Gunnar Edh, head of Lantmännen’s energy division. “By investing in biogas, we would be able to ensure the utilisation of residual streams from Lantmännen’s own production to an even greater extent and build on our circular business model.”
Owned by 18,000 Swedish farmers, the co-op has 12,000 employees, has operations in 20 countries and an annual turnover of approximately SEK 70bn.
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“With a large raw material base, the conditions are in place to be a stable partner against the gas market’s increased need for renewable and fossil-free energy,” added Magnus Kagevik, president and CEO of Lantmännen. “In the process, biofertiliser is also created that can be used in agriculture and thereby create additional added value on our owners’ farms and for Swedish agriculture in general.”
Biogas is considered a more sustainable option than natural gas since the amount of carbon dioxide released when biomass is burned is roughly the same as the amount the plant captured through photosynthesis while growing. It also removes animal manure and food waste from the environment and prevents nitrogen pollution and runoff into water resources.
But green campaign groups such as Friends of the Earth argue that relying on zero-carbon sources like wind and solar should be prioritised over carbon-neutral sources like biogas.
