Nefco finances Fremsyn to expand biomethane production in Denmark

The Nordic Environment Finance Corporation (Nefco), has signed a EUR 6 million financing agreement with Danish biogas company Fremsyn to support the acquisition and upgrade of a biogas facility in northern Jutland, Denmark, according to a press release. The funding will enable Fremsyn to modernize the Vegger biogas plant, increase biomethane production, and introduce carbon capture and e-methane solutions. The deal reflects a broader push to scale low-carbon alternatives to fossil gas across Europe.

Fremsyn, founded in 2017, develops, constructs, and operates biogas facilities and trades biomethane and Guarantees of Origin through its subsidiaries. Biomethane is described as a flexible, low-carbon alternative to fossil gas that plays an important role in achieving the EU’s climate and energy targets. The Vegger project marks a step in scaling biomethane production and advancing circular energy solutions. Fremsyn is also participating in Nefco’s ongoing Biodiversity Pilot Programme, which helps companies integrate biodiversity considerations into their operations.

The project will increase annual biogas production from approximately 37 GWh to up to 52 GWh. The upgrade includes grid connection, a biogas upgrading unit, and carbon capture capable of capturing up to 5,000 tonnes of CO₂ annually, as well as an electrolyser to convert captured CO₂ into e-methane. Further expansion phases will increase capacity and efficiency, with full completion expected by 2028. Part of the project is supported by the Danish Energy Agency and will demonstrate the integration of electrolysis into biomethane production. The increased biomethane output will be certified with Guarantees of Origin and supplied to a Swiss customer under a long-term agreement, with volumes reaching 48 GWh annually from late 2027.

Nefco’s loan is provided to Fremsyn’s trading subsidiary Biogem A/S and channelled to the project through the group, helping enable the overall investment alongside other financiers while supporting components that are often harder to finance.

Knud Boesgaard, CEO of Fremsyn, said: “With the upgrade of the Vegger facility, we are taking an important step in scaling up biomethane production and introducing new technologies such as carbon capture and e-methane, allowing us to reduce emissions and deliver renewable gas to our customers. We are very pleased to be able to realise this important project through partnership with Nefco and other financing partners.”

Søren Berg Rasmussen, Senior Investment Manager at Nefco, noted that the investment illustrates how the green transition can be accelerated by upgrading existing infrastructure and integrating new technologies. He added that supporting biomethane production together with carbon capture and hydrogen solutions reduces emissions while strengthening Europe’s energy resilience. The Vegger project combines modernization, grid integration, and advanced technologies in a single operation. It stands as an example of how blended finance can enable complex renewable energy projects. Full completion of the expansion is anticipated by 2028.