The European Investment Bank (EIB) has granted Nortegas Group funding of up to €80m to enable group subsidiary Nortegas Renovables to finance the construction of biomethane plants in Spain.
The financing falls under the EIB action plan to support REPowerEU, and is backed by InvestEU, an EU programme designed to mobilise over €372bn in additional investment from 2021-2027.
The project will enable the development of the first phase of Nortegas Renovables’ strategic plan, which aims to generate up to 3.5 TWh/year by 2030.
The funding also includes the launch of a digital operations centre which will provide latest waste management solutions.
The primarily medium-sized investments set to receive financing will produce renewable biomethane to be injected into the existing natural gas network, replacing fossil fuel-derived natural gas and taking advantage of existing distribution infrastructure.
The plants will use agricultural waste – mainly livestock manure from surrounding farms – and, to a lesser extent, organic by-products from agribusiness and vegetable waste.
The Spanish government’s guarantee of origin system will certify the sustainability of the source of the biomethane provided and related greenhouse gas emission savings.
The production of biomethane from the project will help reduce direct greenhouse gas emissions from agricultural activity, lower the risk of direct emissions’ release into air and water associated with livestock production and contribute to the security and diversification of energy supply in the EU, reducing the EU’s dependence on fossil fuels such as natural gas.
Currently Spain has 11 operational biomethane plants that produce 455 GWh/year and around 200 projects are in the pipeline.
Nadia Calviño, EIB Group President, said, “The EIB is backing innovation and the development of new green fuels, which are key to the energy transition, decarbonisation and European industrial competitiveness. This investment consolidates Spain’s position as the country of renewables”.
European Commissioner for the Economy Paolo Gentiloni said the InvestEU programme supports investments that strengthen energy security and reduce greenhouse gas emissions, driving forward the green transition across Europe.
He said, “This agreement exemplifies these goals, representing a transformative step in Spain’s renewable energy landscape by multiplying the country’s current biomethane production capacity.”
“We are not only advancing energy security and supply diversification but also reinforcing our commitment to sustainability and the circular economy. Initiatives like these bring us closer to a cleaner, more resilient energy future.”
Kadri Simson, Commissioner for Energy, welcomed the agreement to increase biomethane production capacity in Spain.
“It will help the EU with the energy transition and decarbonising the gas market, supporting the REPowerEU plan’s objective to end Europe’s dependency on fossil fuel imports,” she said.
“Biomethane can immediately start replacing natural gas, and it is produced here in Europe, creating jobs, growth and benefiting local communities by increasing their energy security, for example. The production of biomethane has accelerated in Europe during the past years, and we need to keep up pace.”
Felipe Requejo, Nortegas Renovables General Manager, said, “This credit line gives us visibility in implementing our plan to generate 3.5 TWh/year by 2030, strengthening Nortegas Renovables’ long-term strategy as a developer and operator of biomethane assets and thereby contributing to decarbonisation and energy supply security in Spain.”
Nortegas CEO Javier Contreras added that support for the development of this renewable gas – a key pillar of Nortegas’ strategic plan – boosts the potential of Spain’s natural gas networks to decarbonise its customers’ heating applications and underscores its importance to the energy transition.
