[NEWS] KAINUU: Focus on alternative fuels

Implementation of the alternative fuels policy for heavy traffic, a demonstration of value chain approach

FOOD COMPANY Valio (dairy products) and the energy company St1 set up a joint venture to produce renewable biogas from dairy manure and other agricultural by-products. The joint venture demonstrates the economic and environmental potential of institutionalised collaborations between biogas supply and demand actors and the importance of supportive value chains: Valio has a significant amount of sustainable raw materials and St1 has a nationwide distribution network that can make biogas produced from manure available to customers.

(St1 and Valio start producting biogas from manure. PICTURE: MARTTI KAINULAINEN / LEHTIKUVA JA TONI REPO / AL, source: www.hs.fi/talous/art-2000008059704.html).

The goal is to produce biogas for heavy traffic, achieve significant emissions’ reduction in transport activities and contribute to Finland’s energy self-sufficiency. ST1 and Valio estimate that during the first phase, around the middle of the decade, biogas would be produced in 2-3 concentrations. Valio’s target is carbon neutrality in the milk chain by 2035. According to the company, the average carbon footprint of milk on Valio's dairy farms is currently 0.8–1.3 kilograms of carbon dioxide equivalent per liter of milk.

• According to Valio (https://www.hs.fi/talous/art-2000008059704.html) “About 15 million tons of manure are produced in Finland annually, and a large part of it comes from Valio's dairy farms. Now we get a huge amount of new raw material that can be transferred to transport fuel.”

• According to ST1, (https://www.hs.fi/talous/art-2000008059704.html), co-operation with Valio is part of the company's goal of solving global energy challenges. "When this opportunity arose, we already had other projects underway in the Nordic countries that support our growth strategy specifically for this area, which will introduce new, domestic and sustainable fuel."

According to the companies, the precondition for creating supply and demand in line with Finland's biogas target is that gas-powered transport equipment becomes significantly more common.