Suomen Lantakaasu building Finnish biogas project with €100 million

Helsinki based energy firm Suomen Lantakaasu Oy has announced that it will be building a biogas facility in Kiuruvesi, Finland, to produce renewable liquefied biogas (LBG) primarily from cattle manure and agricultural byproducts with an investment of about EUR 100 million. This comes at a time when Europe is trying to move away from the Russian gas supplies.

Suomen Lantakaasu said that the biogas project is scheduled for completion in 2026 and its part of the Upper Savo biogas complex, which includes the central Kiuruvesi plant and three planned satellite facilities in Lapinlahti, Sonkajärvi, and Nurmes.

Founded in 2022, Suomen Lantakaasu is a joint venture between Nordic biogas company St1 Biokraft AB and Finnish food company Valio.

With a total investment of approximately €100 million ($107 million), including €19.2 million ($20.5 million) from the EU’s Recovery and Resilience Facility, the initiative represents a significant boost to regional biogas production.

Janika Keinänen, Senior Project Manager at Valio said that the network of biogas plants will have a significant impact on reducing agricultural emissions in Upper Savo and will support broader industry development. Keinänen also acknowledged the commitment of over 100 local agricultural entrepreneurs who have agreed to supply manure under a binding contract. The plant is expected to process around 400,000 tonnes of manure annually, generating roughly 125 GWh of LBG—enough to power 250 heavy-duty vehicles per year.

The facility will use a hybrid model, receiving manure-based compressed biogas from other plants in the complex for liquefaction. Suomen Lantakaasu will distribute the LBG to heavy transport sector which is difficult to electrify.

In addition, the company aims to promote circular agricultural practices by returning biofertilizer, a by-product of biogas production, to local farms. While most feedstock contracts are already secured, the company is open to working with additional manure suppliers nearby.

The Kiuruvesi facility and its satellites are expected to contribute significantly to Suomen Lantakaasu’s goal of producing one terawatt-hour of renewable transport fuel. The company is also building another plant in Nurmo and evaluating new site options in the Ostrobothnia region.