Sharareh Edström: Energizing Future Transport and Value Chains

At the core of every efficient supply chain is well-planned logistics and transportation. The future of transport is eclectic, and gas carries the most important role in this transition to achieve sustainability while maintaining competitiveness. But to make the transition smooth, I call for increased transparency, cross-industry partnerships, and for a more comprehensive view on the sustainability of value chains, says Sharareh Edström, Director of Traffic Sweden, Gasum.  

As one of the leading producers of biogas and handler of biodegradable waste in the Nordics, Gasum has built a reliable gas infrastructure that secures the availability of gas in the Nordics. This infrastructure covers the full value chain from production of biogas to transport and distribution.  

“Gasum has contributed tremendously to the development of the market and invested a lot to make sure it’s easier for transporters to convert to gas”, Edström says. 

Today, sustainability is the driving force for many players, and many more are joining in. The regulatory environment is steering and supporting cleaner solutions. The customer demand for low emission solutions has increased rapidly. And as things evolve fast, this also leaves some conceptions outdated. 

Sufficient, sustainable and economically feasible 

The key questions around biogas usually focus on availability and costs. Will there be enough gas to satisfy the demand, does it require additional investments in infrastructure? According to Edström, these questions were very topical in the transport sector just a few years ago. Conversion to gas was seen as complicated and expensive. As these fears have diminished with Gasum´s investment plans to continuously grow the filling station network, the question of continuity still lingers – will the gas run out?  

“There is this misconception, that there wouldn’t be enough feedstock to produce sufficient amounts of biogas for traffic. There is a realistic feedstock potential in the Nordics to make 30 TWh worth of biogas. We’re aiming to supply 4 TWh of biogas to the market through our own and partners’ production in 2024 already. This amount would cover the yearly fuel need of around 10 000 heavy-duty vehicles. In addition, the gas infrastructure enables the utilization of synthetic methane and power-to-gas solutions in the future, which significantly expand the availability of renewable gas”. 

In addition to Gasum’s own initiatives, there is also support from the Swedish government’s behalf to increase the production of biogas. As part of the Klimatklivet, a support initiative for local and regional investments, the Swedish government wants to introduce production support for biogas: 500 million kronor next year and then 700 million kronor annually until 2040. 

Edström says that customers recognize gas as a smart and cost-efficient investment, knowing there will be continuous investments in the infrastructure, which also creates more stable prices than the fossil alternatives. 

In Sweden, there are a total of 27 stations, of which Gasum has opened 17 liquefied natural gas filling stations for long haul gas trucks and many more are to be built in the nearest future. 

In 2020, sales of liquefied gas increased by 230%. The trend continues, not only in Sweden but in the neighboring Nordic countries and the rest of Europe, as well. 

A need for a transparent and holistic view – taking action where it matters 

Edström says, that the sustainability discussion on supply chains occasionally tends to lack a holistic view, and thusly a certain part of the chain might get a proportionately larger focus than it should, referring to transport emissions.  

“Today, we’re talking about the whole value chain, therefore it doesn’t make sense to focus on just one part of it – the tailpipe. We need to look at the whole value chain when it comes to the life cycle. From the fertilizer to the food being cropped, to the final product sitting on the table”. 

Gasum offers expert services for heavy transport, maritime and industry, making the company active in the whole value chain. Renewable gas offers a new link between the industries. 

“Gasum’s liquid biogas is produced from biodegradable waste such as manure, food waste, damaged crops and process water from the industry. During the production, we also get biofertilizers, that can be used to grow new crops in the Swedish fields. When you choose liquid biogas, you become part of the circular economy “, Edström says. 

“I would like to have more transparency than what we have today. For example, cross-industry emission savings should be much higher appreciated than tailpipe emissions. We need to redirect our efforts much easier to see a product’s true lifecycle emission”, she adds. 

Partnering up across industries 

“I would like to see industries collaborating to integrate our value chains and visualize how circularity is bringing exponential effects not just in transport but in agriculture and waste management as well. Once we get these industries working seamlessly together, then we will see the sustainable benefits and reach our ambitious national goals”. 

The key to a better understanding is to link between the different industries, fuel, industries with organic waste and agriculture, and make the benefits of circularity visible and understandable for the larger public. 

In addition to aiming for better transparency, Edström advises companies to really study their value chain to identify where the most significant emission savings can be made and take action there to minimize the impact on our climate. 

“Companies need to be very clear on where they’re emitting emissions. It very seldomly is the last mile that is the problem. There is a need to recognize where the emissions lie and take action on a global, and a national level.”