French energy company Engie has acquired two biomethane production sites in the Netherlands, with plans for expansion in line with its goal to produce 10 terawatt hours (TWh) of the gas and sell 30 TWh annually in Europe by 2030.
The acquisitions increase Engie's total installed biogas production capacity in Europe to 1.1 TWh, equivalent to about 0.04% of European Union natural gas consumption last year.
One of the plants, located in Hardenburg, currently produces 0.09 TWh annually, with the potential to expand to 0.15 TWh. The second site in Alkmaar produces 0.05 TWh annually and could expand to 0.094 TWh.
Camille Bonenfant, who heads Engie's European renewable gas business, expressed optimism about the acquisitions, stating, “We hope, as was the case in England, that with these two acquisitions we will acquire some notoriety in the Netherlands that will allow other opportunities to come to us.”
Biomethane, chemically identical to natural gas, is produced by bacteria feeding on crops and manure in a process called anaerobic digestion. EU rules classify biomethane as “renewable,” allowing countries and companies to count it as green energy and mandate its use via quotas, particularly in the transport sector.
Bonenfant noted that the biogas from the acquired sites already has guaranteed buyers via existing contracts. However, Engie aims to include the volumes in its own sales portfolio over time to boost its integrated gas business.
While the deal price for the acquisitions was not disclosed, last year Engie paid 64.8 million pounds ($80.73 million) to acquire three British sites producing 0.16 TWh annually. Last month, it added another 0.06 TWh to its portfolio with the acquisition of Rainbarrow Farm in Britain.
