In 2014, the City of Vaasa (in Finland) committed to procure a fleet of 12 buses, which could run fully on biogas recovered from organic waste and waste-water sludge at local treatment plants. Contract performance clauses, which specified a rebate for the supplier if annual consumption was more efficient than estimates, or a refund if less, were also included to incentivise lasting and reliable performance. The city organised two separate tender competitions 1) for the service provider and 2) for the biogas vehicles, including their maintenance. The City of Vaasa released the buses to the use of the service provider, who in turn has committed to take these vehicles into use for the next five years. This helped transfer the business risk from the service provider to the procurer. In addition, the city made a contract with a local biogas producer, Stormossen, who in turn organised the biogas delivery network tendering. As well as replacing 280,000 litres of diesel every year, this procurement has created a ‘circular loop’ for the by-products of local waste, and supports infrastructure development in making biogas available for a further 1,000 cars. Expected savings for the biogas buses amounted to 1,000 tonnes of CO2 per year.