St1 Biokraft has secured a €260 million financing package from an eight-bank European syndicate to fund its €1 billion biomethane infrastructure pipeline. The capital will rapidly scale up greenfield biomethane production and expand LBG distribution networks, providing key alternative fuel infrastructure for the European heavy transport and maritime bunkering sectors.
Stockholm | June 1, 2026 – Nordic biogas heavyweight St1 Biokraft has finalized a major €260 million ($282 million) corporate financing package to accelerate the expansion of its biomethane (bio-LNG/LBG) production and distribution infrastructure across the Nordic countries and Northern Europe.
The massive capital injection strengthens the company’s financial liquidity as it executes an aggressive €1 billion rolling investment strategy. This strategy is explicitly designed to scale up alternative fuel supply chains for hard-to-abate sectors, specifically targeting heavy road transport, industrial applications, and the rapidly growing maritime bunkering market.
Fueling a €1B Value Chain: From Feedstock to Vessel Manifold
The structured corporate financing will back St1 Biokraft’s end-to-end business model, which spans the entire bio-LNG value chain, including organic feedstock sourcing, large-scale anaerobic digestion production plants, logistics, and down-stream retail distribution networks.
A significant portion of the €260 million proceeds is earmarked for:
- Greenfield Production: Developing new, utility-scale biomethane production facilities across Northern Europe.
- Logistics & Infrastructure: Expanding the company’s Liquefied Biogas (LBG) filling and bunkering network to meet the strict carbon-accounting mandates facing vessel operators and logistics fleets.
St1 Biokraft has set a firm target to achieve 3 TWh of internal biomethane production and 6 TWh in total sales and distribution by 2030.
“This financing is a clear validation of St1 Biokraft’s strategy and business model and marks an important milestone in our growth journey,” said Miika Johansson, CEO of St1 Biokraft. “Biomethane is increasingly recognized as a scalable and investable asset class, and we have built a platform with industrial depth across the full biomethane value chain and demonstrated that our end-to-end model works.“
Commercial Banking Syndicate Backs the Biogas Rollout
The financing package was issued by a heavyweight syndicate of eight prominent European financial institutions, signalling strong banking confidence in large-scale, integrated biofuel platforms.
The transaction details include:
- The Banking Syndicate: ABN Amro, DNB, ING, Nordea, OP Bank, Rabobank, Sparebank1, and Swedbank.
- Advisory Roles: ING acted as the sole financial advisor, facility agent, and security agent, with all eight participating banks serving as arrangers.
- Corporate Backing: The package was closely structured alongside St1 Biokraft’s primary industrial shareholders, energy group St1 Group and private equity firm HitecVision.
Why Biomethane is Surging in Maritime
The timing of St1 Biokraft’s financial closing is highly strategic. With the implementation of the EU Emissions Trading System (EU ETS) and the phased tightening of FuelEU Maritime greenhouse gas (GHG) intensity limits, vessel operators are aggressively searching for drop-in, zero-rated bio-fuels.
Liquefied Biogas (LBG), when used as a drop-in blend or a complete fuel replacement in LNG-dual fuel vessels, offers an immediate, legally compliant route to slash carbon liabilities without requiring modifications to existing cryogenic bunkering infrastructure or vessel engines.
About St1 Biokraft
St1 Biokraft is a leading biogas operator in the Nordic region, joint-owned by St1 Group and HitecVision. Headquartered in the Nordics, the company specializes in producing and delivering bio-LNG and biomethane to heavy transport and maritime industries, backed by a planned €1 billion development pipeline running through 2030.
Source: St1 Biokraft