Nordic Ren-Gas signs €1 billion deal to supply e-methane to German heavy transport

Finnish renewable energy firm Nordic Ren-Gas has signed a €1 billion supply agreement with German company Avanca Energy to deliver e-methane for heavy transport customers in Germany, Yle reports.

The long-term contract covers e-methane produced at Nordic Ren-Gas’s planned Tampere facility, with the company calling it one of Europe’s largest commercial deals in the sector.

CEO Saara Kujala said the agreement signals the opening of European renewable hydrogen fuel markets, providing confidence in end-product demand and supporting investment decisions for other projects, including planned plants in Lahti, Pori, and Kotka.

“This is the most important milestone before the investment decision. We are now preparing the paperwork for the decision and financing, with the goal of starting construction on the Tampere plant this year,” Kujala said.

The e-methane, produced by combining renewable hydrogen with captured carbon dioxide, will be transported via existing European gas pipelines to Germany, where it will be liquefied and distributed to heavy-duty vehicles without requiring modifications to fuel systems or refueling stations.

Avanca Energy’s subsidiaries, Avanca Renewables AG and Alternoil GmbH, are also part of the deal, linking Nordic Ren-Gas’s production platform with Avanca and Alternoil’s renewable LNG distribution network in Europe.