Goldman Sachs is interested in biomethane production in Europe
Goldman Sachs Investment Corporation is planning to allocate about 1 billion euros for the production of biomethane in Europe. The funds will be channeled over 4 years through a specially organized company, Verdalia Bioenergy.
Biomethane is an environmentally friendly alternative to natural gas. Its production is based on the decomposition of agricultural waste. The European Union sees this fuel as one of the key ways to switch to a low-carbon resource that will reduce harmful emissions. According to the EU’s climate goals, countries should produce 370 TWh of biomethane and biogas annually by 2030. This is 10 times the current production of raw materials. To achieve this, the EU will need to invest around €80 billion.
Through the new company, Goldman will provide funding for various biomethane projects. Both fully operational companies and those in the process of developing the technology can count on the investment. Verdalia Bioenergy has already signed some agreements to acquire sites in Spain with a total capacity of 150 GWh per year. To date, these companies are working on process development.
Denmark is considered one of the European leaders in biomethane production. According to government plans, this fuel will completely replace the use of natural gas by 2034. In 2021, the amount of biogas produced covered the demand for conventional feedstock by 25%. Today, 50 companies in Denmark are engaged in the production of environmentally friendly fuel, the largest of which is located in Korskro.
The European Biogas Association has analyzed the potential for industry development in each EU country. In addition to Denmark, Germany, Poland, Italy, France, and Spain have the optimal ratio of infrastructure and raw materials. Experts note that to meet the targets set, Europe must increase the pace of construction of new plants, even in those regions where there has been no production of biofuels. To this end, it is important to ensure full government support and to speed up the procedures for obtaining the necessary permits. Currently, the process of obtaining permits to build biomethane plants takes about 12 months, and the construction process itself takes 18 months.
Another important issue is access to gas infrastructure and improved logistics for an uninterrupted supply of biowaste. In addition, analysts say that the introduction of the minimum price level is a good stimulus for the development of the industry. Such a step will increase the inflow of investments into the production of biofuels, and this threshold should be set separately for each state, taking into account the peculiarities of the domestic market.
