Verdalia Bioenergy Buys 7 Biomethane Plants from Green Arrow Capital and Lazzari&Lucchini

Verdalia Bioenergy, a platform launched by Goldman Sachs in February 2023 to invest over a billion euros in Europe in the biomethane sector by 2026, has acquired a portfolio of 7 operating plants in the Brescia area for the production of biomethane from funds controlled by Green Arrow Capital and Lazzari & Lucchini, a company specialized in the production of energy from renewable and sustainable sources.

The portfolio bought by Verdalia Bioenergy consists of plants with a total production capacity of approximately 190 GWh

In the operation, Green Arrow and L&L were assisted by MFZ (financial advisor), Parola & Associati (legal and regulatory aspects) while Verdalia Bioenergy was supported by Intesa Sanpaolo (for the M&A aspects), by Ashurst (for the legal aspects), by EY (for the financial and fiscal part), by Ramboll (in the technical field) and by ERM (for environmental issues).

The portfolio consists of plants with a total production capacity of approximately 190 GWh of biomethane deriving from the treatment of 350 thousand tonnes of raw materials per year, with the possibility of expanding these volumes by over 50%. The plants have come into operation over the last few years and aim to eliminate approximately 65 thousand tons of greenhouse gas emissions per year. The construction of the assets is part of the partnership, started in 2020, which now aims to double the number of plants with a second portfolio of at least six assets , which will come into operation by 2025.

The entire portfolio of these first 7 plants produces biomethane thanks to the sole recovery of livestock effluents and agricultural by-products not intended for human consumption. During 2023, the last four of the seven plants were put into operation and, last December, the project financing of the entire portfolio was finalized.

The seven plants bought by Verdalia Bioenergy, built and financed between 2020 and 2023, are incentivized pursuant to the Ministerial Decree “Biomethane 2018”, which represented a significant step towards the promotion of renewable energy in the Italian energy sector, establishing incentives and regulations to encourage the production and use of biomethane.

In detail, the last four plants inaugurated in March were: Bio Gottolengo Solaro and CH4 Gottolengo, both located in Gottolengo; Bio Sole, located in Montichiari; and Gambaresca in Verolanuova. The three that have already been operational for some time are Bio Tre Ponti, located in Borgo San Giacomo; Bio Industria, with production of BIOGNL, and Bio Verola, both in Verolanuova.

The acquisition of the latter portfolio therefore strengthens Verdalia Bioenergy’s presence in Europe in the biomethane sector on the continent, building on an infrastructure business model . All plants benefit from the incentive program established by the Ministerial Decree of 2 March 2018 and the feedstock is guaranteed through medium-long term supply contracts.

Fernando Bergasa, president and CEO of Verdalia Bioenergy, commented: “We believe that Italy is at the forefront of the European decarbonization program through biomethane, which is based on a supportive regulatory framework , and we are proud to actively contribute to the plan energy transition of the country through this important investment.”

Matteo Botto Poala, managing director of Goldman Sachs Asset Management’s infrastructure investment business, added: “We are very happy with the progress made by Verdalia which, once again, is testament to Goldman Sachs Asset Management’s track record in being a pioneer in investments for the energy transition and in the development of successful platforms. We look forward to continuing to invest in European biomethane and attracting new talent to join Verdalia’s world-class management team.”

Matteo Grandi, country manager of Verdalia Italia, concluded: “Green Arrow and L&L have developed 7 high-level biomethane plants. The acquisition of these plants represents an important starting point to launch our activities in Italy and we look to the future with optimism, continuing to work on our expansion in the country.”

Verdalia Bioenergy had conducted its first investment in Spain

Grandi, previously responsible for agricultural and agri-industrial biomethane at Snam and previously at Ladurner, was appointed last September to lead the development of Verdalia Bioenergy Italia’s activities, at the same time as the announcement of the company’s entry into the Italian market. Verdalia Bioenergy had conducted its first investment in Spain, coinciding with the launch of the platform in early 2023, relating to a portfolio of biomethane projects in intermediate development, with a total capacity of approximately 150 GWh/year.

Since then the company has made significant progress and now has a team of 50 people and a pipeline of mid-to-late-stage development projects in Spain and Italy with a volume of over 2.5 TWh of biomethane per year. As explained in a note from the company, Verdalia Bioenergy will continue to pursue new expansion opportunities through the acquisition of brownfield and greenfield projects , establishing partnerships with EPCs and long-term agreements with offtakers and feedstock suppliers, also thanks to the strengthening of its team.

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(Featured image by Julia Koblitz via Unsplash)

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