Sumitomo Corporation has partnered with Denmark's Skovgaard Energy to form a joint venture, North Sky A/S, focusing on expanding biogas production and developing sustainable aviation fuel (e-SAF) in Denmark.
Sumitomo Corporation, a global trading and business investment company, has joined forces with Denmark's Skovgaard Energy (SE) to establish North Sky A/S, a new joint venture set to significantly expand biogas production and develop sustainable aviation fuel (e-SAF) in Denmark.
The newly formed North Sky A/S aims for an ambitious annual biogas production target of approximately 40 million Nm³, enough to meet the gas demands of around 20,000 Danish households. Beyond this initial target, the joint venture will also oversee the expansion of SE's existing biogas production facilities across Denmark, solidifying the nation's leadership in renewable energy. Furthermore, leveraging the expertise gained from these biogas operations, the companies will venture into other bioenergy sources, with a particular focus on the development and commercialization of e-SAF, a crucial step towards decarbonizing the aviation industry.
Denmark, a prominent agricultural nation, is strategically positioned to leverage organic waste for energy production. The country has set an ambitious goal to fully power its national gas grid with biogas by 2030, highlighting the increasing importance of this renewable energy source. Biogas, derived from organic waste like food residue and livestock manure, offers a carbon-neutral solution by returning only the CO2 originally absorbed by its raw materials. Its domestic sourcing also enhances energy self-sufficiency and stimulates the development of new production facilities nationwide.
Skovgaard Energy, established in 1999, brings a wealth of experience in renewable energy development, including wind power projects and existing facilities for biogas production from cattle manure. Their strong partnerships with Danish agricultural cooperative associations have secured a long-term raw material supply agreement through 2032, ensuring stability for the joint venture's biogas operations.
The collaboration between Sumitomo Corporation's extensive business network in Europe and SE's established strengths is expected to drive the expansion of the biogas business and accelerate e-SAF production. E-SAF, a synthetic fuel produced from biomass-derived carbon dioxide and green hydrogen, is poised for significant demand growth as the aviation sector seeks sustainable alternatives. Denmark's impressive reliance on renewable sources for approximately 90% of its domestic electricity gives it a distinct advantage in procuring green hydrogen. By expanding biogas operations, North Sky A/S will be able to provide a stable and cost-effective supply of biomass-derived CO2, a key ingredient for e-SAF.
