Investment firm Infranity infuses €245 million into an Italian biomethane manufacturer
Infranity, a leading sustainable infrastructure investor, has announced ambitious plans to scale up biomethane production in Europe. The company aims to produce 11 billion cubic meters (bcm) of biomethane per year by 2030, a significant increase that could contribute significantly to decarbonizing the energy system and meeting EU renewable energy and climate goals.
This target is part of Infranity's mission to drive biomethane deployment in Europe as part of the continent's transition to sustainable energy sources and achieving the European Green Deal objectives, including the Renewable Energy Directive (RED II) targets. Biomethane, produced from biogas upgrading, is seen as a key renewable gas alternative that can help reduce greenhouse gas emissions, particularly in hard-to-electrify sectors.
Infranity's commitment to biomethane production was recently demonstrated with a €245m loan to FemoGas, a biogas company that produces liquid biomethane for heavy-duty vehicles and maritime transport. This investment will allow FemoGas to double its production to 0.5 TWh by 2027 and aim for annual production of 1.5 TWh by 2030.
Infranity's foray into the biogas sector is not its first significant investment in the renewable energy sector. Last month, the company announced a €200m investment in German renewable energy company Blue Elephant Energy. Infranity also managed around €12.5bn in assets last year and raised more than €1.5bn for a Europe-focused debt strategy.
In addition to FemoGas, other projects receiving funding include solar projects in Latvia, for which a loan of €84.8m was provided by the EBRD, EIB, and SEB. Meanwhile, Cibus Capital co-led a $40m investment in a robot mushroom project.
The increased production of biomethane could have significant environmental benefits. For instance, the injection of 1.5 TWh of biomethane into the Italian gas network could reduce CO2 emissions by heavy-duty vehicles serving Italian farms by one million tonnes a year.
The biomethane produced will be aimed at decarbonizing Europe's road and maritime transport sectors, a crucial step towards achieving the European Commission's annual production target of 35 billion cubic metres (bcm) of biomethane production by 2030. Biomethane, derived from organic matter like manure or silage from farms, offers a renewable and sustainable solution to meet the growing demand for clean energy.
Infranity's commitment to biomethane production is a testament to the company's dedication to sustainable infrastructure and its role in driving the European energy transition. The company's focus on five main fields of infrastructure, including energy transition, green mobility, the environment, social infrastructure, and digital transformation, positions it as a key player in the continent's renewable energy future.
Infranity's dedication to sustainable infrastructure extends beyond biomethane production, as they've also ventured into blended finance for projects like the robot mushroom project and solar projects in Latvia. With the energy transition in mind, Infranite sees sports as another sector where renewable energy can make a significant impact, potentially powering sports stadiums and training facilities with clean energy, contributing to the overall decarbonization efforts of Europe.
