Finland’s largest biogas plant using grass as its main feedstock to be built in Rantsila

Illustration of the planned Rantsila biogas plant

Gas1 Oy is building a biogas plant in Rantsila that will use sustainably produced grass as its main feedstock. A project company, Rantsilan Metaani Oy, has been established for the project. The company has submitted an environmental permit application to the Regional State Administrative Agency for the construction of the first phase of the plant, with a capacity of under 35,000 tonnes, on an approximately 8-hectare municipally owned plot in Tuohimaa. The environmental impact assessment process required for the expansion will begin in 2025.

“Constructing the plant in two phases allows the project to move forward more quickly,” summarizes Lauri Malinen from Gas1 Oy, who is responsible for technical design.

The final size of the expansion will be determined during a more detailed assessment, but based on preliminary estimates, the area has the potential for over 100 GWh of annual production. Once upgraded, this corresponds to more than 10 million litres of diesel and is intended for use as liquefied biomethane in heavy transport.

The cost estimate for the first phase of the two-stage investment is around €15 million, and approximately €50 million for the entire project. Construction is scheduled to begin in autumn 2025 at the earliest.

“The goal for 2025 is to complete the permitting processes and assess the conditions for investment support,” says Mika Kallio, CEO of Gas1 Oy.

The project has been prepared in close cooperation with the municipality of Siikalatva. Municipal manager Pekka Iivari views the project with great interest. “In Siikalatva, and especially in the Rantsila area, livestock farming has decreased significantly in recent years. The fields in the region are excellent for grass production, so we believe the biogas plant will revitalize the agricultural operating conditions throughout the area,” Iivari notes.

Based on assessments, the region has at least 300,000 tonnes of grass, most of which is intended for use as fodder outside the area. Of this amount, at least 100,000 tonnes consist of fractions most suitable for biogas production.

The biogas plant will also create opportunities for other businesses in the area. Biometane upgrading generates a large amount of carbon dioxide, and the most active party expressing interest in utilizing it is Carbonaide Oy, a VTT spin-off company.

The company aims to use the carbon dioxide to reduce the need for cement in producing concrete products and elements for its customers—while also enabling the use of alternative binders generated locally.

“We have many potential customers in the Oulu region who could utilize biogenic carbon dioxide on a significant scale. Most likely, we would transport liquefied CO₂ to the customer’s existing plant. However, from both an economic and ecological standpoint, it would be optimal if concrete products could be manufactured within the same ecosystem where the CO₂ is generated. I see a business opportunity in Rantsila for concrete product manufacturers,” says Jonne Hirvonen, COO of Carbonaide Oy, envisioning the future.

Further information:

Mika Kallio, Gas1 Oy, 044 323 7707

Pekka Iivari, Municipality of Siikalatva, 044 511 8400

Jonne Hirvonen, Carbonaide Oy, 040 632 4999

Gas1 Oy is a project company developing biogas-plant-driven ecosystems. The Lahti-based company has about ten projects at various stages, two of which have received a total of approx. €10 million in EU investment support.