The vision of St1 is to be the leading producer and seller of CO₂-aware energy. Renewable energy production is at the very core of the corporate strategy: our goal is to gradually replace fossil energy with renewable solutions.
The base of our business strategy lies in St1 Outlook that summarizes the global energy challenge we all are facing. There is an urgent need in the world to create new, cost-efficient renewable energy solutions. Although the share of renewable energy is growing, fossil energy continues to grow much faster.
The transition to renewable energy is inevitable and it has already started. However, it requires a lot of R&D work and also smart political decisions to stop the climate change. St1 wants to be at the forefront of the energy industry in the transition process. We are constantly striving to identify opportunities and looking for competent cooperation partners in potential business segments and markets.
St1 currently has several wind power projects under way in Norway and Sweden. The project that is the furthest along is the 800 MW Davvi wind farm project in the northern part of Eastern Finnmark in Norway, which is currently in the permit phase.
St1 offers operation of wind farms in Finland as a service business, 245 MW in total.
Through St1’s entry into the biogas business, we have taken a big step towards reaching our vision of being the leading producer and seller of CO₂-aware energy. Biogas infrastructure will complement our value chain as there are synergies between existing operations and gaseous fuels.
In Sweden, St1 is already a leading biogas player in the traffic segment. We import and export biogas and deliver it to customers through several sales channels. St1 has six biogas production and upgrading units, two of which are partly owned companies, Söderåsen Bioenergi AB and Falkenbergs Biogas AB. In addition, St1 is in the construction of a biogas upgrading and liquefaction refinery in Sobacken, Borås, in Sweden. The biorefinery is expected to commence operations by the end of 2023.
In Finland, St1 and the food company Valio have established a joint venture to produce renewable biogas from dairy farm manure and other agricultural by-products as fuel for heavy-duty transport. The joint venture company, Suomen Lantakaasu Oy, is planning to build Finland’s biggest biogas production plant in Upper Savo, Finland. In addition, St1 will expand the distribution of the liquefied biogas (LBG) to Finland. The first stations are currently under construction and will be opened at the end of the year 2023.
In Norway, Biogass Energi AS, owned 33.33 % by St1, will build six biogas filling station across the country which will be operational by year end 2024. This is part of a governmental initiative by Enova to establish a nation-wide network of biogas filling points.
St1 is building a new renewable diesel plant at its oil refinery in Gothenburg. The biorefinery will have an annual capacity of 200,000 tons of renewable diesel production and is expected to commence its operations in 2024. The combined value of related investments will be in the order of EUR 200 million.
The design brings flexibility to the process allowing a wide range of feedstocks to be used. The unit can meet the current and future specifications for renewable fuels to be produced, such as HVO diesel, jet fuel, and naphtha. The produced renewable fuels will have significantly lower CO2 emissions compared to traditional fossil fuels. Preparations for the procurement of feedstock for the plant and related negotiations with various partners are ongoing.
As a company in transition, we need to uncover new avenues for sustainable growth and feasible future energy solutions. St1 is looking at the entire field of renewable energy and searching for potential new technologies that can be commercialized.
We are exploring the opportunities of, for example, energy storage systems and solar power in order to bring you new, smart energy options for the future.
The global energy challenge requires also a major increase in biological carbon sinks. St1 ran a Carbon Farming pilot project in Morocco between 2018 and 2022 in order to explore reduction of coal from atmosphere with afforestation.
Read more about the Moroccan pilot project in the research report.
The energy challenges that we and future generations face, if not solved quickly, will have serious consequences. St1 Outlook gives the ‘bigger picture’ on climate change, global energy challenges and considers how we can reverse the situation.
