Biomethane production facilities in Italy receiving €76 million investment by Quercus and Elionia

In a significant move towards accelerating the energy transition, renewable energy specialists Quercus Real Assets and Elionia have completed the financing for three greenfield biomethane plants in northern Italy. The financing was carried out through their joint venture vehicle, QGM.

The three plants mark the first phase of a broader portfolio comprising more than 20 similar initiatives planned for development in the same region. Diego Biasi, Co-founder and CEO of Quercus, and Danilo Fumarola, Co-founder and CEO of Elionia, have expressed their intention to invest in sustainable businesses not only in Italy but potentially elsewhere in Europe.

The biomethane sector is expected to see significant growth in the future, with a combination of electrons and biofuel molecules being emphasized. This growth is reflected in Italy's strong upturn in biomethane investment activity. The Ministry of the Environment and Energy Security has allocated €193m for biomethane development.

The plants will be built during the next ten months and will be operated using agriculture by-products and animal manure. The total cost of the transaction is €76 million, with SACE, an insurance and financial group controlled by the Ministry of Economy and Finance, guaranteeing 50% of the facility.

Quercus' experience developing the first anaerobic digestion facility in East London was drawn upon in the recent financing of these plants. Meanwhile, Anaergia will develop an AD plant in northern Italy. The project financing was arranged by BNL BNP Paribas, Banco BPM, and Mediocredito Centrale.

In a positive development for the sector, the European Investment Bank has approved a €264m loan to build biomethane pipelines. This investment underscores the bank's commitment to supporting the growth of renewable energy sources and the transition to a more sustainable future.

These three greenfield biomethane plants in northern Italy represent a significant milestone in Quercus Real Assets and Elionia's shared commitment to sustainable energy production and the acceleration of the energy transition. Their ongoing efforts are expected to contribute positively to Italy's renewable energy landscape and the broader European energy market.