European company, Infranity, invests €245 million in Italian biomethane producer
Infranity Invests €245m in FemoGas to Boost Biomethane Production
In a significant move towards sustainable energy, Paris-based sustainable infrastructure investor Infranity has provided a loan of €245 million to Italian biogas producer FemoGas. This investment marks Infranity's first venture into the biogas sector.
With this funding, FemoGas aims to double its production of liquid biomethane for heavy-duty vehicles and maritime transport to 0.5 TWh by 2027. The company further intends to accelerate the production of chemical and organic fertilisers not derived from hydrocarbons. By 2030, FemoGas targets an annual production of 1.5 Terawatt hours (TWh) of biomethane.
Biomethane, a renewable gas derived from organic matter like manure or silage from farms, is at the heart of this initiative. The injection of 1.5 TWh of biomethane into the Italian gas network could potentially reduce CO2 emissions by heavy-duty vehicles serving Italian farms by one million tonnes a year. This reduction corresponds to approximately 2.5% of the emissions from Italy's agricultural sector.
Infranity, which manages around €12.5bn in assets, 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 loan will be used to refinance and build seven liquid biomethane plants.
This contribution is part of broader efforts in Italy to expand biomethane production, with the country overall targeting up to 5 billion cubic meters of biomethane per year by 2030 to reduce dependence on fossil fuels and cut greenhouse gas emissions.
Last year, Infranity announced it had raised more than €1.5bn for a Europe-focused debt strategy. The company also announced a €200m investment in German renewable energy company Blue Elephant Energy.
Meanwhile, the biomethane generated from the facilities backed by the financing deal will be commercially available to serve the European road and maritime transport sectors. Cibus Capital co-led a $40m robot mushroom investment, further demonstrating Infranity's commitment to sustainable and innovative projects.
In a separate development, Export Finance Australia provides a $100m loan to EAAIF, the European Agricultural and Agri-Food Investment Fund, to support agricultural and agri-food projects in Africa and Asia. The EBRD, EIB, and SEB provide €84.8m in loans for Latvia solar projects, underscoring the global momentum towards renewable energy.
- Infranity's €245 million investment in FemoGas, a significant step in energy transition, will be used to construct seven liquid biomethane plants, demonstrating their commitment to sustainable finance and the environment.
- The energy transition landscape is expanding, as shown by Infranity's investment in FemoGas and their aim to double biomethane production, a critical component in the transition from fossil fuels to renewable sources.
- With Infranity's investment in FemoGas, science and engineering will play a crucial role in the production of biomethane, not only for Italy's energy needs but also for the environmental-science sector as a whole, contributing to the global efforts in combating climate change.
