Macquarie Asset Management’s Green Investment Group (GIG) announced today the acquisition of BayWa r.e. AG’s specialist biogas platform, BayWa r.e. Bioenergy.
BayWa r.e. Bioenergy develops, constructs and operates biogas projects that provide biomethane and power to local energy companies, industrial companies and energy traders. Biomethane is derived from the decomposition of organic waste materials, and can be used as a renewable, low carbon alternative to fossil-based fuels such as natural gas.
The acquired portfolio includes five operational plants in Germany as well as a pipeline of development in Italy. According to GIG, the business’s current operational assets produce a total of approximately 140 GWh of biomethane annually helping avoid 13.16 ktCO2e of GHG emissions every year.
Chris Archer, Co-Head of Gig Europe, said:
“As a locally produced, direct alternative to fossil fuel-based natural gas, biomethane is an attractive solution for corporate and industrial customers looking to decarbonise. With its track record and deep technical expertise, BayWa r.e. Bioenergy is already a leader in this rapidly growing sector, and we are excited to work with the business’s current partners to support the platform’s continued growth.”
The announcement of the investment comes as the EU rolls out its REPowerEU plan, proposed by the European Commission earlier this year, outlining a strategy to reduce European reliance on Russian fossil fuels through measures including the deployment of renewable and clean energy capacity.
The Commission’s investment proposals through 2030 under the new plan include €37 billion to increase biomethane production, alongside €86 billion for renewables, €27 billion for key hydrogen infrastructure, €56 billion for energy efficiency and heat pumps, and €41 billion to adapt industry to use less fossil fuels.
GIG stated that it aims to explore opportunities to grow the business’ presence in Germany, Italy and other existing and emerging growth markets in Europe, in light of these tailwinds. The firm also aims to employ technologies such as carbon capture and CO2 liquefaction to enhance the platform.
“There are significant tailwinds in the European biomethane sector driven by the circular economy benefits of treating agricultural waste together with the need to decarbonise sectors which are hard to electrify.”
Matthias Taft, CEO of BayWa r.e. AG, added:
“GIG has played a leading role in driving the net zero transition and is well placed to take BayWa r.e. Bioenergy GmbH and its employees forward and to realise their growth potential. BayWa r.e. AG will focus on its core business of electricity generation from wind and solar energy.”