EIB Provides $83.9 Million Financing for Spanish Biomethane Plants

The European Investment Bank (EIB) will provide EUR 80 million ($83.9 million) to Nortegas Group company Nortegas Renovables to finance the construction of biomethane plants in Spain.

The EIB said in a media release that the project it is financing together with InvestEU will enable the development of the first phase of Nortegas Renovables' strategic plan, which aims to generate up to 3.5 terawatt-hours (TWh) per year by 2030. Meanwhile, the launch of a digital operations center will provide innovative waste management solutions by applying cutting-edge technology and digitalizing the group's plants, the EIB said.

According to the EIB, the mainly medium-sized projects that are expected to be funded will generate renewable biomethane to be introduced into the current natural gas grid, substituting fossil fuel-based natural gas and utilizing the existing distribution systems. 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, EIB said, adding that the Spanish government's guarantee of origin system will certify the sustainability of the source of the biomethane provided and the related greenhouse gas emission savings.

The biomethane production from the project will lower greenhouse gas emissions from agriculture, reduce pollution from livestock, and enhance energy security in the EU by decreasing dependence on fossil fuels like natural gas, the EIB said.

“The EIB is backing innovation and the development of new green fuels, which are key to the energy transition, decarbonization, and European industrial competitiveness. This investment consolidates Spain's position as the country of renewables”, Nadia Calviño, EIB Group President, 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 decarbonization and energy supply security in Spain”, Nortegas Renovables General Manager Felipe Requejo said.

This EUR 80 million framework financing is a component of the EIB's action plan aimed at supporting REPowerEU, a program designed to enhance the energy security of the European Union and accelerate the green transition. Additionally, it is supported by InvestEU, an EU initiative to generate over EUR 372 billion ($390.3 billion) in extra investments from 2021 to 2027.

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