NIB Provides EUR 33.5 Million Loan to Tønder Biogas for One of Europe’s Largest Biogas Facilities

Image: Tønder Biogas A/S

(IN BRIEF) The Nordic Investment Bank (NIB) has signed a 16-year loan agreement worth DKK 250 million (EUR 33.5 million) with Tønder Biogas A/S to finance one of Europe’s largest biogas facilities in Tønder, Denmark. The plant, set to begin operations in 2025, will produce over 41 million Nm3 of methane annually, replacing natural gas with biomethane to avoid 90,000 tonnes of CO₂ emissions each year. The facility will process 930,000 tonnes of biomass annually and contribute to the production of digestate for local farmers. This project will bolster Denmark’s energy self-sufficiency and contribute to the country’s growing biogas sector.

(PRESS RELEASE) HELSINKI, 7-Feb-2025 — /EuropaWire/ — The Nordic Investment Bank (NIB), an international financial institution with focus on the Nordic and Baltic countries, has entered into a 16-year loan agreement worth DKK 250 million (approximately EUR 33.5 million) with Tønder Biogas A/S to finance the development of one of Europe’s largest biogas facilities in Tønder, Denmark. This investment will help fund the construction and operational phases of the facility, which is slated to begin commercial operations in the first half of 2025.

With a production capacity of more than 41 million Nm3 (equivalent to 455 GWh) of methane annually, the Tønder Biogas facility will be one of the largest of its kind. The biogas plant will replace natural gas with biomethane, effectively preventing over 90,000 tonnes of CO₂ emissions each year. Additionally, the plant will capture and sell more than 48,000 tonnes of liquid CO₂ to Power-to-X operators, further contributing to the country’s climate goals.

The entire biogas output will be injected directly into the national natural gas grid, with the facility processing around 930,000 tonnes of biomass each year. This will include manure and industrial waste as feedstock, eliminating the need for energy crops. The plant will also produce more than 800,000 tonnes of digestate, which will be distributed to local farmers as fertilizer, contributing to sustainable agricultural practices.

NIB President and CEO, André Küüsvek, emphasized the significance of the project, stating, “Renewable energy solutions are central to decarbonization and the development of clean energy infrastructure. This biogas facility will enhance energy security by making Denmark’s natural gas supply more self-sufficient, reducing dependence on foreign gas imports.”

Having begun construction in 2021, Tønder Biogas A/S’s plant is poised to become one of Denmark’s largest biogas production sites, supporting the country’s growing biogas sector, which has expanded fivefold since 2012. Once operational, the facility will generate enough energy to meet the annual needs of over 25,000 households.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies S&P Global Ratings and Moody’s.

For further information, please contact
Bo Nordberg, Director, Project & Structured Finance, +358 10 618 0395, bo.nordberg@nib.int

Oliver Mølvang Hermansen, Associate Communications Officer, +358 10 618 0225, oliver.hermansen@nib.int

SOURCE: Nordic Investment Bank