Record proportion of biogas in the western Swedish gas grid

The western Swedish gas grid supplies industrial users, households and companies with gas, and distributes one fifth of all energy used in south-western Sweden. Of the gas consumed in the first quarter of 2025, 39.3% was biogas. This is the highest proportion of biogas ever used in the western Swedish gas grid, and represents a steep increase compared to the previous quarter, when the proportion was 25.6%.

This record figure represents a clear shift in the trend, partly because of the tax exemption for biogas having been reintroduced. Nordion Energi’s goal is for 100% of the grid to consist of biogas, both to increase security of supply and reduce the carbon footprint, says Carolina Wistén, Director Customers and Markets at Nordion Energi.

The previous record was set in the last quarter of 2022, when 38.1% of the gas in the gas grid was biogas. Shortly afterwards, the Swedish tax exemption for biogas was removed following a ruling at the European Court of Justice, while a deteriorating economy had an adverse effect on willingness to pay for biogas. Since then, the proportion of biogas in the grid has fallen steadily to around 25%. At the end of 2024, it was announced that the tax exemption could be reintroduced, which may partly explain the sudden shift in the trend.

- The political rules of play are important. Long-term, stable rules enable developments to move more quickly than at present. A clear political goal for the use and production of biogas would have created greater sense of security in the market, says Carolina Wistén.

In 2024, Nordion Energi adopted a plan to realise the vision of a grid comprising 100% biogas. Since that plan was adopted, interest in connecting more biogas to the grid has increased significantly, and around 20 existing and planned plants have submitted enquiries about connecting. In addition, Nordion Energi recently made an investment decision on a liquefaction plant at the Port of Gothenburg, which could further increase the incentive for biogas producers to connect to the grid.

- There’s strong momentum in the market right now, among both users and producers of the gas. In addition to producing biogas using traditional methods, there are now also several new technologies that will make even more large-scale production possible in the future, says Carolina Wistén.

For more information, please contact:
Erik Hultgren, Communication, Nordion Energi
erik.hultgren@nordionenergi.se
+46 (0)76-130 24 83