In Europe, demand for bio- and synthetic methane gas—which can replace natural gas—is set to grow rapidly in the coming years. Germany is currently in the process of passing a law requiring that natural gas used for heating be blended with one of these alternative gases, with the required proportion increasing over time. The war in Iran has also reminded many Europeans that importing natural gas from far away is always a risky business. Replacing it with another type of gas may make sense, even if costs rise slightly.
In Germany, domestic production of biogas or synthetic gas is nowhere near enough to meet growing demand, so these gases must be imported from abroad. Elsewhere in Europe, too, demand is growing faster than supply.
Kristinestad can benefit from both the change in German law and the effort to reduce dependence on natural gas: as a result, Kristinestad residents can gain new jobs, businesses can earn export revenue, and the city’s coffers can be filled with tax revenue to improve services for residents. Kristinestad can grow as a producer of gas alternatives to natural gas.
The core of these gases is methane
Natural gas consists almost entirely of methane (CH₄), formed from carbon and hydrogen. When methane pumped from underground is burned, the carbon it contains is released into the atmosphere as carbon dioxide (CO₂), formed from carbon and oxygen, thereby altering the climate.
Biogas is also largely composed of methane and carbon dioxide. Biogas is produced by digesting materials such as manure, sludge, and biowaste in a reactor designed for this purpose. Since the carbon contained in these materials originally came from carbon absorbed by plants from the atmosphere, their use does not accelerate global warming, and therefore, biogas is a better option for the environment than natural gas.
Synthetic methane gas is typically produced by first generating hydrogen from water using electricity. This is then combined with carbon that has, in one way or another, also been captured from the atmosphere by plants. This gas can also be used without causing excessive warming of the atmosphere.
Kristinestad is a good location for producing both biogas and synthetic methane. The region has extensive agriculture and food production, providing ample manure, slurry, and plant waste for biogas production. The coast is also known for its abundant wind, which is why it makes sense to build wind turbines in Kristinestad—as has already been done to a large extent.
Gas production can grow
Biogas production in Europe has grown, but it remains well short of its full potential. Currently, over 20 billion cubic meters of biogas are produced industrially in Europe, but by 2040, biogas production could increase fivefold to well over 100 billion cubic meters, according to UABIO.
Synthetic methane production is just getting started. In the best-case scenario, Europe, according to researchers, could produce synthetic methane equivalent to over 500 gigawatts of power, corresponding to approximately 450 cubic meters of methane. However, this best-case scenario is unlikely to be achieved, as it would require completely ideal conditions, including extremely cheap loan capital and a massive, rapid expansion of new wind and solar power that is significantly cheaper than current sources.
By comparison, in 2024, EU countries collectively used 280–370 billion cubic meters of natural gas; Europe as a whole uses even more.
Bottlenecks in biogas can be eliminated
The increased use of biogas and synthetic methane is being held back by price. Natural gas is available on the global market at a much lower price. However, this price barrier is diminishing, as German law, for example, will require that a portion of heating gas be purchased as bio- or synthetic gas, even if the price is higher than that of natural gas. Companies may also purchase new, more expensive gases if the availability of natural gas is not guaranteed or if, for example, wars cause natural gas prices to rise significantly.
The production of biogas in plants is hindered by the fact that collecting and transporting suitable slurry, plant waste, and other materials can be unnecessarily difficult and laborious for farmers. The necessary bureaucracy and data collection also create extra work for farmers. These issues can be alleviated through digital services. The University of Vaasa, Centria University of Applied Sciences, and Seinäjoki University of Applied Sciences have already developed their own digital platform for this purpose, and a company called Agri2X plans to further develop it into a service that makes life easier for farmers in Kristinestad.
Another major problem has been the lack of a biogas plant in Kristinestad. However, this problem is about to be resolved. Rannikon Biokaasu and Gas1 are planning to build a biogas plant in Härkmeri, Kristinestad. The plant would process sludge, greenhouse plant waste, and other raw materials for agricultural gas production, as well as biowaste from industry and commerce. The biogas plant’s designers are also exploring the use of marine-derived raw materials, such as bycatch and seaweed, in the plant.
Kristinestad has what it takes for synthetic methane production
In addition to price, the production of synthetic methane is generally limited by the availability of cheap renewable energy. However, Kristinestad is in a better position than many others when it comes to wind power. The region can accommodate even more wind turbines than it does now—and in addition to land areas, large offshore wind farms can also be built at sea.
Renewable electricity and other advantages of Kristinestad may be bringing the city its first synthetic fuel production plant. Hopefully, Koppö Energia will make a final investment decision this year regarding a synthetic methanol (CH₃OH) production plant, which would be located in the Karhusaari industrial area. Methane and methanol are both excellent fuels of a similar type, but whereas methane is a gas at room temperature, for example, methanol is a liquid and therefore easier to transport in the absence of gas pipelines.
A multi-gas platform would help
Kristinestad has everything it needs to prosper through gas production. The pieces are already in place. We just need to work together to ensure that the pieces fall into place locally and development can move forward.
We also expect help from outside parties. First, the government should abandon its plans to make it harder to build wind and solar power facilities. Second, we hope to gain momentum from Gasgrid, which is building a natural gas and hydrogen pipeline network in Finland. Currently, Gasgrid is planning to build a hydrogen pipeline along Finland’s west coast, which would also pass through Kristinestad. The hydrogen pipeline would facilitate the production of synthetic methane and methanol, as it would ensure the availability of hydrogen at production facilities. However, Kristinestad’s development would be further enhanced if this construction project were expanded to create a multi-gas platform consisting of a pair of parallel pipelines, with methane gas flowing alongside hydrogen in its own pipeline. In that case, even small amounts of biomethane produced by a biogas plant, for example, could be easily and relatively inexpensively sold as far as Germany.
At the same time, we must also acknowledge the limitations. Not everything of plant origin should be converted into biogas, as current technology can produce even more valuable products from them, such as textile fibers or chemicals. Secondly, the scale in Kristinestad is always small, and it is not worth building, for example, one of Europe’s largest biogas plants in the city. But not everything has to be big. The mere fact that biogas production can help reduce costs for local farmers or even generate additional income is a welcome development for the residents of Kristinestad. If synthetic methane production plants were to bring, say, a hundred new jobs to the city, it would have no impact on Finland’s overall unemployment rate, but in Kristinestad it would feel like a massive boost to vitality, both in schools and at store checkouts.
Angelique Irjala
CEO, Business Kristinestad
+358 40 569 3796
angelique.irjala@krs.fi