Goldman Sachs Asset Management said on Feb. 6 it had launched a biomethane business called Verdalia Bioenergy and aimed to invest more than 1 billion euros ($1.08 billion) in Europe over the next four years.
Biomethane, a lower carbon alternative to fossil-based natural gas, is produced from the decomposition of organic waste and is seen as a key plank in efforts to lower carbon emissions in the European Union.
Some 80 billion euros of investment is needed to increase the EU production of biogas and biomethane tenfold to reach a target of 370 terawatt hours (TWh) per year by 2030, accelerating decarbonization and increasing energy security.
Verdalia Bioenergy will invest in both early-stage biomethane development projects as well as existing assets with the aim of contributing to Europe's decarbonization and energy security agenda, the asset manager said on Feb. 6.
It has already signed an agreement to purchase a portfolio of biomethane projects with a total capacity of around 150 gigawatt hours (GWh) per year in mid-stage development in Spain.
"We believe that biomethane is today one of the most compelling segments in the energy transition for infrastructure investors," said Matteo Botto Poala, a managing director in GSAM's infrastructure business.
Biomethane can be used in the same way as natural gas and delivered using the same infrastructure, yet comes without the same high level of climate-damaging emissions.
Biogas and biomethane production has already created 210,000 green jobs in Europe and is saving 60 million tons of greenhouse gas emissions per year, according to the European Biogas Association.
Recommended Reading
Mitsubishi Makes Investment in MidOcean Energy LNG
2024-04-02 - MidOcean said Mitsubishi’s investment will help push a competitive long-term LNG growth platform for the company.
Tellurian Reports Driftwood LNG Progress Amid Low NatGas Production
2024-05-02 - Tellurian’s Driftwood LNG received an extension through 2029 with authorization from the Federal Energy Regulatory Commission and the U.S. Army Corps of Engineers.
Mexico Pacific Appoints New CEO Bairstow
2024-04-15 - Sarah Bairstow joined Mexico Pacific Ltd. in 2019 and is assuming the CEO role following Ivan Van der Walt’s resignation.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Tellurian Executive Chairman ‘Encouraged’ by Progress
2024-03-18 - Tellurian announced new personnel assignments as the company continues to recover from a turbulent 2023.