Methane gas dispenser closed in Hafnarfjörður

N1 has decided to close one of its two methane stations in Tinhellu (Hafnarfjörður). The reason presented was that the contract between N1 and SORPA, the company producing biomethane from the landfill has changed and less quantity of methane are now provided.

Last December after decision of the Competition Authority, SORPA, Metan ltd, Orkuveita Reykjavíkur and N1 had to pay a total of 9 million ISK due to collusion on prices of CNG. The companies pledged  to stimulate competition in this field.

A press release from N1 said that the company now receives considerably less methane to sell to their customers because of this. N1 can therefore not sustain two more points of sale. In light of this, it has been decided to close the smaller position in Tinhellu on 20th June 2013.

Eggert Benedikt Gudmundsson, CEO of N1, states that they have been investing heavily in equipment to ensure the development of biomethane as fuell from waste at N1.

"Orkuveita Reykjavíkur laid a pipeline to the station and we have sold gas from it and pay rent. This project is an important part of our efforts to provide environmentally friendly energy sources. Due to lower supplies to us from the landfill we need however to close Tinhellunni which will ensure supply of our bigger station in Bíldshöfða. It was about 10% of the methane from N1 that was sold in Tinhellu."

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