Suomen Lantakaasu Moves Forward with Nurmes Biogas Plant Following Environmental Permit and Investment Decision

Suomen Lantakaasu Moves Forward with Nurmes Biogas Plant Following Environmental Permit and Investment Decision

(IN BRIEF) Suomen Lantakaasu Oy has received the environmental permit and confirmed its investment decision to construct a new biogas plant in Nurmes, which will operate as a satellite facility for the central liquefied biogas plant under construction in Kiuruvesi. The Nurmes plant will produce around 6–7 GWh of biomethane and 34,500 tonnes of organic fertiliser annually, helping reduce emissions and transport distances for manure-based feedstock. With Lapinlahti also moving forward and Sonkajärvi delayed due to land constraints, the hybrid production model in Upper Savo advances with support from €19.2 million in EU funding. The initiative, led by Valio–St1 joint venture Suomen Lantakaasu, aims to refine scalable solutions for decentralised biogas production in Finland.

(PRESS RELEASE) HELSINKI, 9-Jun-2025 — /EuropaWire/ — Suomen Lantakaasu Oy has received the environmental permit for its new biogas and fertiliser production plant in Nurmes, triggering an official investment decision to proceed with construction. The Nurmes facility is part of a broader hybrid production model in Upper Savo, supporting Suomen Lantakaasu’s flagship industrial-scale liquefied biogas plant currently being developed in Kiuruvesi.

Designed as a ‘satellite plant,’ the Nurmes facility will convert manure and agricultural side streams into biomethane, helping to minimise transport distances for raw materials and promote more sustainable waste management. Located within the Nurmes Biopark, a centre for green industry and recycling innovation, the plant is expected to begin operations in 2026.

Preparatory works at the site began in early 2025, including tree clearing and soil removal. Once operational, the plant will produce approximately 500 tonnes (6–7 GWh) of biogas annually. This biomethane will be compressed and transported to the Kiuruvesi site for liquefaction, supporting the integration of distributed gas production with centralised processing. In addition to energy, the plant will produce 34,500 tonnes of organic fertiliser per year, which will be returned to the farms that supply the feedstock.

Suomen Lantakaasu’s Kiuruvesi plant will process manure from regional cattle farms, along with other agricultural and food industry by-products, reinforcing the company’s circular bioeconomy approach.

The hybrid concept in Upper Savo was originally designed to include three satellite plants—in Lapinlahti, Sonkajärvi, and Nurmes. The Lapinlahti plant received its environmental permit in April 2025 and is proceeding as planned. However, despite receiving its environmental permit in May, the Sonkajärvi plant faces limitations due to natural values and land-use constraints that significantly restrict both construction and future expansion potential. As a result, the Sonkajärvi project cannot be realised within the timeframe of the existing investment aid and requires further revision.

“With the investment decisions now made for both Lapinlahti and Nurmes, we are advancing fully with the hybrid production model in Upper Savo,” said Leena Helminen, Managing Director of Suomen Lantakaasu Oy. “These sites will allow us to test the scalability and efficiency of our distributed compressed biogas (CBG) model combined with centralised liquefaction, and to refine our satellite plant concept for future expansion across Finland.”

Suomen Lantakaasu Oy, a joint venture between dairy and food company Valio and renewable energy firm St1 Biokraft, has secured €19.2 million in NextGenerationEU funding to support the development of the Upper Savo biogas plant network.

Media Contact:

Tel: +358 10 381 2118
email: mediadesk@valio.fi

SOURCE: Valio