St1 Biokraft secures €260 million for biomethane expansion in Europe

Leading Nordic biomethane firm St1 Biokraft has secured a €260 million corporate financing package from a group of major European financial institutions, strengthening its financial position and supporting its expansion strategy across the Nordics and Northern Europe.

The funding will enable the company to scale its integrated business model, which spans the entire biomethane value chain—from feedstock sourcing and production to logistics, distribution, and sales. This end-to-end approach positions St1 Biokraft to meet rising demand for biomethane across heavy transport, maritime, and industrial sectors.

The transaction reflects strong confidence in the company’s operational platform, growth pipeline, and long-term strategy, while also highlighting its solid relationships with a newly formed core banking group.

Miika Johansson, CEO, St1 Biokraft, said, “We thank our banking partners for their support and our project team for their exceptional work. Biomethane is increasingly recognised as a scalable and investable asset class, and we have built a robust platform across the full value chain that demonstrates the strength of our model.”

St1 Biokraft has set ambitious targets to achieve 3 TWh of biomethane production and 6 TWh of sales and distribution by 2030. These goals are backed by planned investments of €1 billion in biogas production facilities and distribution networks across the Nordic region.

A significant portion of the newly secured funds will be directed toward developing new greenfield production sites and expanding the company’s liquefied biogas (LBG) refuelling station network.

The financing package was arranged by a syndicate of eight banks – ABN Amro, DNB, ING, Nordea, OP Bank, Rabobank, Sparebank1, and Swedbank. In collaboration with St1 Biokraft and its shareholders—HitecVision and St1 Group—the banking group structured a financing solution aligned with the company’s long-term growth ambitions.

The deal signals growing investor and lender confidence in the biomethane sector, particularly in large-scale, vertically integrated platforms with strong operational capabilities and established routes to market.

As per OP Bank, St1 Biokraft is a leading Nordic biomethane player and plans to invest €1 billion in biogas production and distribution in the Nordics by 2030.