Gasum signs e-methane offtake agreement with Nordic Ren-Gas

Gasum and Nordic Ren-Gas have signed an e-methane offtake agreement, the companies announced today (9 January).
Nordic Ren-Gas’s Power-to-Gas plant in Tampere, Finland will produce 160 GWh of renewable e-methane annually, which Gasum will procure and distribute it to its customers.
The long-term sales agreement means Gasum will purchase all e-methane produced at the Tampere plant from 2026 onwards.
The use of e-methane will cut greenhouse gas (GHG) emissions in road and maritime transport, said the organisations.
Nordic Ren-Gas said it will develop, build and operate the Tampere Power-to-Gas plant, which produces e-methane using renewable electricity from Finnish wind power and biogenic carbon dioxide captured from existing power plants.
In the power-to-gas process, hydrogen is first produced using renewable electricity and water. The hydrogen is then further processed into e-methane by combining the hydrogen with biogenic carbon dioxide. E-methane produced in this way is fully renewable, and will replace fossil fuel usage in transportation, maritime and industrial sectors, according to the companies.
They added that e-methane is fully interchangeable with natural gas and biogas, and that, when liquefied, it is fully interchangeable with liquefied natural gas (LNG) and liquified biogas (LBG).
This means that it can be transported through already existing infrastructure – trucks, ships, pipelines – and directly used in assets currently running on natural gas or biogas.
“This partnership is a massive game changer with the possibility to expand the availability of renewable gas at an industrial scale," said Mika Wiljanen, CEO of Gasum Group. "Gasum aims to become a significant player in the e-methane market, and this is the first step on that path. The e-methane produced by Nordic Ren-Gas is a competitive renewable fuel, which can be efficiently distributed through our existing infrastructure to our customers in the traffic, maritime and industry segments. Nordic Ren-Gas has an impressive pipeline of similar projects on the way – this is a strategically important partnership for us.”
“We are extremely happy about this offtake agreement and partnership with Gasum, which enables the introduction of e-methane to the market very efficiently," said Saara Kujala, CEO of Nordic Ren-Gas.
"Ren-Gas has been actively building a value chain for e-methane in Finland, for which this agreement is a concrete milestone. Ren-Gas has a development portfolio of several e-methane production projects, and this partnership enables us to accelerate the development of these important green transition projects.”
Gasum added its strategic goal is to bring seven terawatt hours (7 TWh) of renewable gas yearly to market by 2027.
Achieving this goal would mean a yearly cumulative carbon dioxide reduction of 1.8 million tons for Gasum’s customers.