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Denmark's Nature Energy is teaming up with Bunker Holding Group, Kosan Crisplant and the Port of Frederikshavn to develop an LNG liquefaction plant at the Danish port in 2018.

The aim of the project is to convert biogas to liquid fuels at the new facility, which would then be used as a transportation fuel - for ships and heavy road transport - in the Baltic and North Sea region. Nature Energy has agreed to supply biogas to the plant.

With more than 100,000 ships passing through the strait of Skagerrak each year, the project partners see Frederikshavn Harbour as an optimal location for the new liquefaction plant, which could act as a sourcing location for sustainable fuels not only in Denmark, but also throughout Scandinavia.

Kosan Crisplant A/S - which is tasked with building the plant - is a leading supplier of equipment for infrastructure and facilities for the production and handling of gas, whilst Bunker Holding is the world's second-largest bunker company.

Nature Energy, meanwhile, has several years' experience in the sale and distribution of natural gas to Danish business and residential customers as well as in the production of biogas.

When the project was first announced in February, Bunker Index reported that Unioil Supply A/S - Bunker Holding's subsidiary in Aalborg - is to handle the commercial aspects of the LNG project. The company has already arranged LNG deliveries in Denmark.

Speaking at the time, Peter Zachariassen, Head of Physical at Bunker Holding, said: "We expect a rising demand for LNG in the years ahead, and we have been good at finding the perfect business parters. Our extremely well-organised set-up means that we are ready to cover all of Denmark and Sweden.

"LNG is part of the future, and it is important for us to be at the cutting edge of developments and to be able to offer our customers diversification in our product portfolio. Thus, several shipping companies have already taken great interest in our project which helps to emphasise Denmark's focus on green energy," Zachariassen added.

The project is scheduled to be commissioned by the end of 2018.