Biofrigas continues to develop in line with growing interest in liquid biogas (LBG) and the company’s small-scale liquefaction technology. Meanwhile, work is progressing on the first commercial plant in Habo, and the company has recently announced a rights issue to enable the scaling up of sales activities and continued commercialisation.
To provide an up-to-date picture of the business, CEO Erik Fromell answers questions on financing, the project portfolio, the market situation, priorities going forward and developments in ongoing projects.
Key points
- Företrädesemission om cirka 14,9 MSEK stödjer uppskalning av försäljning och affärsutveckling
- Offertstocken bedöms vara något högre än 2024
- Driftsättning i Habo fortlöper enligt plan
- Starkt intresse för större anläggningar
- LOI-processer fortsätter att utvecklas
- Sasejo-samarbetet skapar nya affärsmöjligheter
Finansiering och tillväxt
On 1 April 2026, you announced a rights issue – how will this strengthen Biofriga’s position going forward?
The rights issue announced on 1 April is intended to strengthen the company’s financial position ahead of the next phase. The capital will be used to strengthen the sales organisation and enable continued business development.
Stock of offers
What is the current status of Biofriga’s order pipeline, and how has it developed since 2024?
In 2024, we announced that we had approximately SEK 200 million in our order pipeline. Since then, some projects have not progressed, whilst new ones have been added. Overall, we estimate that the value of the total order book today is slightly higher than the level we announced in 2024.
It is natural for projects to be dropped in this type of business process, whilst new opportunities arise. The important thing is that we continue to see a steady inflow of new business opportunities and broad interest in our solutions. In terms of timing, we estimate that the majority of projects in the order book have the potential to develop into business over the next two years.
The facility in Habo
What is the current status of the plant in Habo, and what are the next steps?
At the end of November, the final components of the plant in Habo were delivered and installed. Since then, the focus has been on commissioning and gradually scaling up production. The ramp-up is proceeding according to plan and work will continue throughout the spring.
During this period, the plant has been operating using a temporary solution for the storage of finished LBG and the refuelling of lorries. In October, our customer submitted an application to Klimatklivet to build a permanent filling station connected to the plant.
If the application is approved, we will temporarily pause LBG production to install the permanent solution. This is a natural next step in the project and will strengthen the plant’s long-term commercial operation.
Market and revenue
Which customer segments do you consider most important for future revenue?
We are seeing broad interest from all the customer segments we target, both for our smaller farm-scale solutions and for our larger facilities.
So far, however, interest has been particularly strong for our larger facilities. As these projects involve larger investments and thus higher order values, we estimate that a significant portion of our revenue in the short to medium term will come from this segment.
At the same time, we view the farm tank solution as important from a scalability perspective, where more standardised solutions can contribute to a more repeatable business model over time.
Business Development
How does Biofrigas handle Letters of Intent (LOIs), and what is the current status of these projects?
Biofrigas follows a structured sales process that often – though not always – begins with us and the client signing a Letter of Intent (LOI). The aim is to jointly develop the customer’s business model, prepare Climate Leap applications and initiate permit processes.
Biofrigas has previously signed a number of LOIs and discussions with these customers are ongoing. The projects are at various stages and are progressing as the business case, financing and permit processes move forward.
Partnerships
What does the partnership with Sasejo Biogas entail, and when can it start generating business?
We view the partnership with Sasejo Biogas as highly interesting and strategically important. Through this partnership, we gain access to a broad project portfolio and, together, we can accelerate sales.
This creates favourable conditions for joint projects where Biofriga’s technology can help increase the value of biogas through liquefaction into LBG. The aim is for the partnership to gradually generate concrete business opportunities as the projects develop.
Market dynamics
What is the most common question you receive from customers?
A common question from customers is whether there is a market for the LBG produced.
Our assessment is that, in practice, this is not a limiting factor, given the structural deficit expected in the market. Demand is driven, among other things, by heavy haulage, industry and shipping, where the need for fossil-free alternatives is growing rapidly.
This means that the focus in many projects is on increasing production rather than finding a market.
Background
What made you decide to become CEO of Biofrigas?
I have been following Biofrigas for a long time, ever since the period when I was working on establishing a Nordic network of refuelling stations for liquefied gas for heavy-duty transport.
Early on in that work, it became clear that the market needed more liquefied biogas (LBG). At the same time, I saw that demand for compressed biogas (CBG) was falling, which created an opportunity to convert existing CBG volumes to LBG.
To make this possible, efficient liquefaction of smaller volumes is required – and that was precisely the technology Biofrigas developed. The combination of a clear market need and a differentiated technology made the company particularly interesting.
Priorities for the future
What are your three main priorities going forward?
- Complete operational optimisation in Habo
- Scale up sales activities
- Set up the organisation for future growth
What have you achieved during your time as CEO?
When I took up the role of CEO, I set three main objectives:
- Complete factory testing – Achieved
- Install the first demonstration plant at a customer site – Installation complete, final commissioning underway
- Scale up sales activities to secure new contracts and enable expansion – Ongoing
We are now close to achieving the first two objectives, whilst continuing to step up our sales efforts to pave the way for the next phase of the company’s development. Biofrigas continues to develop business opportunities and drive forward the commercialisation of the company’s technology in line with growing market interest.
For further updates on Biofriga’s progress, follow us on our website and LinkedIn.
For further information about Biofrigas, please contact:
Erik Fromell, VD Biofrigas Sweden AB
[email protected]
076-565 71 12
About Biofrigas
Biofrigas Sweden AB (publ.) is a Swedish company based in Gothenburg. Biofrigas was founded in 2012 and has developed the CryoSep biogas plant. CryoSep offers the economic potential to produce liquid biogas (LBG) even for smaller operations, something that was previously only available to larger facilities. Small-scale production of liquid biogas is suitable for use in, for example, agriculture, as well as in smaller wastewater treatment plants and industry. Biofrigas is listed on the Spotlight Stock Market.