Investing €245 million in an Italian biomethane manufacturing company, Infranity takes a significant step forward.
Italian biomethane production company FemoGas has received a significant boost, securing a €245 million loan from Infranity. This funding will be used for refinancing and the construction of seven liquid biomethane plants, aiming to double the company's production of liquid biomethane for heavy-duty vehicles and maritime transport to 0.5 TWh by 2027.
FemoGas's ambitious target is to produce 1.5 Terawatt hours (TWh) of biomethane annually by 2030. This production is planned to be injected into the Italian gas network, potentially reducing CO2 emissions from heavy-duty vehicles serving Italian farms by one million tonnes per year. This reduction equates to approximately 2.5% of the total emissions from the Italian agricultural sector.
This move aligns with the European Commission's broader biomethane production goal, which aims to produce 35 billion cubic meters (bcm) annually by 2030. This EU-wide target is designed to reduce dependence on Russian natural gas and push forward the energy transition across Europe. Currently, Europe produces only about 3 bcm of biomethane per year, so FemoGas’s contribution represents a notable increase within Italy and supports the overall EU objective.
Infranity, the provider of the loan, manages around €12.5bn in assets and focuses on energy transition, green mobility, the environment, social infrastructure, and digital transformation. This is Infranity's first investment in the biogas sector. The investment aims to support the development and construction of one gigawatt of renewable energy capacity across Europe.
It's worth noting that last month, Infranity announced a €200m investment in Blue Elephant Energy, a renewable energy company in Germany. Infranity had also announced it had raised more than €1.5bn for a Europe-focused debt strategy last year.
FemoGas's biomethane is a renewable gas derived from organic matter like manure or silage from farms. Three of FemoGas's biomethane production facilities are already operational, and the biomethane generated from these facilities will be commercially available to serve the European road and maritime transport sectors.
In addition to its biomethane production, FemoGas plans to accelerate the production of chemical and organic fertilisers not derived from hydrocarbons. This move is expected to further support the company's commitment to sustainable practices and the energy transition.
[1] Source: FemoGas press release, dated [insert date]
- The significant €245 million loan from Infranity, a finance provider focused on energy transition, green mobility, and digital transformation, will be used by FemoGas for refinancing and the construction of seven liquid biomethane plants, contributing to Italy's renewable energy targets and aiding the country's goal for a sustainable lifestyle.
- The technology behind FemoGas's biomethane production, derived from organic matter, is a key player in the energy transition, as it reduces CO2 emissions and alignment with the European Commission's broader biomethane production goal, aiming for 35 billion cubic meters of annual production by 2030.
- Beyond biomethane production, FemoGas plans to boost its chemical and organic fertiliser production, not derived from hydrocarbons, that will further support the company's commitment to sustainable practices, science, and technology, significantly impacting the agriculture and energy sectors, ultimately contributing to a more environmentally friendly lifestyle and development finance.
