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DLG Group / Press / News
30. May 2023

DLG makes a significant investment in the green transition and becomes a co-owner of BioCirc Group

With an investment of a larger three-digit million amount, the DLG Group now becomes part owner of the energy company BioCirc, which will establish circular energy clusters in Denmark. The new partnership will ensure the central role of agriculture in the green transition in the energy sector.

As part of the Creating the Future 2030 strategy, the DLG Group continues invest in solutions and companies that can enable the green transition within the company's business areas. Towards 2030 the group will invest at least DKK 2 billion with that very purpose, and the investment in BioCirc is the largest to date.

In BioCirc, DLG gets a partner who has invested massively in the Danish production of biogas in recent years and is already Denmark's second largest producer with five large biogas plants in Jutland and Zealand. In the long term, the ambition is to establish land-based, circular energy clusters where biogas production, solar cell and wind farms as well as technologies such as electrolysis, PtX, biorefining of grass and pyrolysis will be brought together. BioCirc is already working with a number of municipalities on the possibilities of establishing energy clusters, which will fulfill the municipalities' 2030 climate goals and ensure a fully green production of electricity, gas, fuel and heat, which corresponds to the municipalities' consumption.

The partnership between DLG and BioCirc is not just good news for DLG's owners, but for everyone who wants greater production of renewable energy, says Jesper Pagh, Group COO and member of the executive board of DLG:

"Agriculture is already today a prerequisite for the green transition in the gas sector to be successful, and with BioCirc's 'energy islands on land' we get the opportunity to think agriculture and energy completely together in a circular model, where farmers in the future will have the opportunity to to be both food and energy producers. In this way, we can help the farmer and the surrounding community to reduce the CO2 footprint by unlocking the potential that is in the farmers' biomass and in their soil, where the energy clusters are to be built. It will help secure the future of Danish agriculture and holds some exciting perspectives.”

Bertel Maigaard, CEO of BioCirc, adds:

"It has been important for BioCirc to include the farmers in the ownership circle, as they are our primary business partners today. They supply a large part of the biomass that we convert into CO2-neutral energy. This contribution is essential in realizing the ambition to create circular energy clusters that ensure a full green transition locally for the benefit of the climate. With Danish agriculture behind us, we stand strong, and I am therefore also proud that DLG's owners now have the opportunity to become part of our business. The strong network of farmers gives us great strength in relation to fulfilling the ambitions to contribute positively to the green transformation of agriculture and the national climate goals."

Synergies between agriculture and biogas production

The partnership between BioCirc and DLG will initially make it both simple and profitable for the cooperative's 26,000 farmer members to supply biomass for Danish biogas production. This gives them a climate benefit on the farm and at the same time contributes to the green conversion of energy production.

"We are not experts in producing biogas, but we have a great deal of knowledge and experience with everything related to the production itself. We are used to trading with the Danish farmers, just as we today play a major role in the delivery and collection of products at the farms. These are some of the competencies that we must put into play, while BioCirc continues to take care of the operation and development of the energy activities," says Jesper Pagh.

Great potential in the future

In 2022, biogas made up 34 percent of total Danish gas consumption. The ambition is for biogas to cover 100 percent of Denmark's gas consumption in 2030.

"There is an enormous growth potential in biogas, and it is precisely that growth that we want to be a part of. Our role will be to push the development and commercialize it with the farmer's interests in mind," says Jesper Pagh.

Biogas is produced by degassing biomass in the form of animal manure and other organic residues. The strategic collaboration between DLG and BioCirc must help ensure the supply of biomass from Danish farmers to Danish biogas plants. DLG, in collaboration with BioCirc, must facilitate that the biomass is collected from the farmer and delivered to the biogas plants. When the degassed biomass is delivered back to the farmer, it can be used as fertilizer in the field. Because the biomass is degassed, it will reduce the CO2e footprint in the farmer's climate account.

"There is still great potential for the production of biogas in Denmark. Within a few years, the industry will not only be able to cover Danish consumption, but there will also be good export opportunities, because we supply a form of gas which is circular and which can replace natural gas. It has great interest both within and outside Denmark's borders," says Bertel Maigaard.

Facts: BioCirc Group

BioCirc is a circular bioeconomic company that was founded in Denmark in 2021. The company's purpose is to establish and produce green energy in the form of electricity, gas, fuel and heat. BioCirc's ambition is to establish land-based circular energy clusters that ensure a full green transition locally.

BioCirc is backed by a number of Danish investors, and the company is managed by Maigaard & Molbech. The CEO of BioCirc Group is Bertel Maigaard. They have offices in Middelfart and Copenhagen and have approx. 100 employees. BioCirc's growth in the biogas sector is expected to continue in the coming years, and with a turnover of more than DKK 1 billion, the company wants to play a significant role in Denmark's green transition.