Italian biomethane producer receives €245 million in investment from Infranity
The European Commission's ambitious goal of producing 35 billion cubic metres (bcm) of biomethane annually by 2030 is a significant step towards enhancing renewable energy and reducing dependence on fossil fuels. This target reflects the EU's commitment to scaling biomethane production to support its climate goals and energy security strategy.
Recently, Paris-based sustainable infrastructure investor Infranity announced a €245m loan to FemoGas, an Italian biomethane producer. This investment marks Infranity's first foray into the biogas sector.
FemoGas, specialising in the production of biomethane derived from organic matter like manure or silage from farms, will utilise the loan to refinance and build seven liquid biomethane plants. The company aims to achieve an annual production of 1.5 Terawatt hours (TWh) of biomethane by 2030.
Currently, Europe produces around 22 bcm of renewable gas (including biomethane and biogas), with biomethane production reaching approximately 5 bcm in 2023, showing an 80% year-on-year increase. The sector is growing rapidly, supported by investments and new plant developments, with more than 1,300 operational biomethane plants in the EU, 85% of which are grid-connected.
The loan from Infranity will allow FemoGas to double its production of liquid biomethane for heavy duty vehicles and maritime transport to 0.5 TWh by 2027. This increased production could reduce CO2 emissions by heavy duty vehicles serving Italian farms by one million tonnes a year.
The biomethane generated from the facilities backed by the financing deal will be commercially available to serve the European road and maritime transport sectors, further supporting the EU's renewable energy goals.
Infranity focuses on five main fields of infrastructure across all of its strategies, including energy transition, green mobility, the environment, social infrastructure, and digital transformation. The investment in FemoGas aligns with these strategic priorities, demonstrating Infranity's commitment to sustainable infrastructure development.
This investment is a significant step towards the EU's renewable energy objectives, and it underscores the potential for biomethane production to play a crucial role in the continent's energy transition. As more investments are made and new plants are developed, the EU's biomethane production is likely to continue its rapid growth trajectory.
- The investment of €245m from Infranity to FemoGas, a biomethane producer, is a notable move towards affordable housing and energy transition within the industry.
- The aim of FemoGas, which produces biomethane from organic matter, is to build seven liquid biomethane plants, supporting the growth of renewable energy and mitigating climate-change effects.
- The expansion of FemoGas, powered by Infranity's investment, could lead to a yearly reduction of 1 million tonnes of CO2 emissions from heavy-duty vehicles in Italy, positively impacting the environment.
- The EU's energy security strategy is bolstered by the increase in biomethane production, with the potential to reach 35 bcm annually by 2030, thanks to investments in private equity and financial backing like Infranity's.
- The real-estate sector could benefit from the increased use of biomethane as a cleaner energy source, which could reduce dependence on fossil fuels and contribute to the broader goal of environmental-science research focusing on combat climate-change.
- The commitment of financial institutions, like Infranity, to sustainable infrastructure development and projects such as FemoGas, is essential for the successful transition to renewable energy, supporting science and business in the process.
- The biomethane produced from the new plants backed by the financing deal would contribute to the EU's renewable energy portfolio, helping it meet its climate goals while maintaining a competitive edge in the global race to modernize and transition to cleaner and greener energy sources.
