Energy and Environment

Biomethane, the richest tender starts on 3 June: chance for conversion

Half of the cubic metres incentivised by the NRP are at stake. So far, new plants have received the majority of the funds. The challenge is to transform the biogas infrastructure

by Alexis Paparo

3' min read

3' min read

A call for tenders that, alone, is worth more than half of the cubic metres incentivised by the NRP measure dedicated to the development of biomethane. The one that will be published next 3 June on the Gse portal - and will close on 2 August - could represent the turning point for the development of the biomethane chain in Italy. The quota allocated is 162,499.26 standard cubic metres per hour, including the share of production capacity that was not allocated in the third procedure and that subject to waivers by projects that were admitted in the previous rankings. The importance of a strategy for biomethane was reiterated by the Minister of the Environment Gilberto Pichetto Fratin: in the proposed update of the Pniec (National Integrated Energy and Climate Plan), production increase targets of six billion cubic metres have been set for 2030, approximately 10% of the estimated domestic gas consumption by 2030.

Photograph of installations

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Italy is the world's fourth largest producer of biogas, after Germany, China and the United States. According to data from the Italian Biogas Consortium, there are 1,803 agricultural biogas plants, while the rest (around 20 per cent) are fuelled by waste and sludge. The total exceeds 2,200 operational plants. Their reconversion has many advantages: ranging from closing the cycle of organic waste, agricultural waste and by-products of the agro-food industry to the production of renewable energy, from the decarbonisation of mobility to the fight against pollution.

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There are 107 biomethane plants in Italy today, according to a photograph taken for Il Sole 24 Ore by Ref ricerche. The majority (73) are in the north, and 34 of these are fuelled by organic matrix waste (Forsu). The centre has 17 plants, almost all fuelled by organic matrix waste (13); the south follows with 16 plants, nine from Forsu. Therefore, the market from other inputs, such as agricultural biomass and agro-industrial waste, remains to be developed.

Investments

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"Italy has all the credentials to be a major player in European decarbonisation through biomethane and this is confirmed by the government's support. It is crucial that a clear roadmap for the future is drawn up, with concrete measures that will allow operators in the sector to plan ahead,' explains Olivier Aubert, managing director of strategy for Swift (Swen Impact Fund for Transition) at Swen Capital Partners. The French company, looking for a partner in Italy from 2019, found it in BiogaServizi from Trieste. Together they set up Ringas, which will produce renewable gas by converting biogas plants into biomethane and building new ones. There are currently six plants in the portfolio, with capital to grow to ten.

"Ringas was created to invest in the long term in Italy. We preferred to focus on biogas plants to be converted because this approach allows us to enter an area already accustomed to interacting with infrastructure, but we are evaluating proposals for greenfield authorisations that solve biomass management problems where infrastructure is lacking," explains Marco Cipriani, ceo of Ringas. Swen Capital Partners created the first European fund dedicated to renewable gas (Swift) in 2019 and is in the process of raising a third.

 Evarist Granata, managing director-Energy Infrastructure at Acp Sgr, an Italian asset management company that focuses on the creation and management of alternative investment funds (AIFs), emphasises that the opportunity is across the board. "If the Pniec targets were met, around EUR 15 billion of infrastructure investments on more than 1,500 biomethane plants would be mobilised over the next six years. These are investments that would activate about 100 thousand temporary annual work units in the supply chain, and more than 8 thousand direct and indirect jobs for the management and maintenance of the plants". Acp Sgr, through its reserved FIA Sustainable Securities Fund, has two biomethane/biogas production plants in its portfolio in Abruzzo, as many in the due diligence phase. Although lagging behind other European countries, 'Italian biomethane production has gone from 5 million cubic metres with seven plants in 2017 to 107 plants in May 2024 with a production capacity of over 770 million cubic metres per year. These will be joined by a large number of projects admitted to the ranking list, which will come into operation within the next 18 months,' Granata concludes.

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