0
The European Investment Bank (EIB) has granted Nortegas Group a framework financing of up to €80 million to enable group subsidiary Nortegas Renovables to finance the construction of biomethane plants in Spain and launch a digital operations centre.
The EIB and InvestEU-financed 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. Meanwhile, the launch of the digital operations centre will provide innovative waste management solutions by applying cutting-edge technology and digitalising the group’s plants.
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 the 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.
EIB Group President Nadia Calviño 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. This agreement exemplifies these goals, representing a transformative step in Spain’s renewable energy landscape by multiplying the country’s current biomethane production capacity. Thanks to this agreement, 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 while creating jobs and bolstering economic growth for all EU citizens”.
Commissioner for Energy Kadri Simson said: “I welcome this agreement to increase the 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. 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. Therefore, the EIB and Nortegas framework loan agreement is particularly good news.”
The project highlights the EIB’s commitment to economic, social and territorial cohesion, as most of the funds will be invested in cohesion regions where per capita income is below the EU average and where there is a risk of depopulation.
“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,” said Nortegas Renovables General Manager Felipe Requejo.
“We are proud that the EIB has trusted us with its first biomethane financing operation in Spain. Its 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 our customers’ heating applications and underscores its importance to the energy transition,” added Nortegas CEO Javier Contreras.
This €80 million framework financing is part of the EIB action plan to support REPowerEU, a programme to improve the European Union’s energy security and speed up the green transition. It is also backed by InvestEU, an EU programme to mobilise over €372 billion in additional investment from 2021 to 2027.
November 28, 2024 - Grupo Nortegas
