Varo Energy is acquiring Renewable Energy Services BV (RES), a biogas marketing company, in a move that “strengthens Varo’s position in Europe” by integrating its feedstock aggregation and manufacturing, the company said in a press release .
The transaction is expected to be completed in the third quarter of 2023, subject to approval by relevant authorities, Varo said. The sale price was not disclosed.
Varo said the acquisition adds a commercial capacity of one terawatt-hour of biogas and green certificates per year, equivalent to the greenhouse gas emissions of 100,000 European households. The deal also enhances the company’s ability to “offer competitive end-to-end biogas solutions for customers in 10 European countries,” the company said.
According to the release, RES has been one of the fastest growing biogas suppliers and traders in Europe since 2013, growing by more than 800 percent year-on-year. In 2022, renewable energy obtained 250,000 megawatt-hours of biogas, resulting in the reduction of 60,000 tons of greenhouse gas emissions. The RES “play an important role” in connecting producers and consumers of biogas in the European Union, according to the statement.
“We believe biogas is a key ingredient in the future European energy mix,” said Varo CEO Dev Sanyal. “The addition of RES to VARO’s diversified portfolio further enhances our sourcing and optimization capabilities in biogas, one of five strategic growth pillars that VARO has identified as offering the most attractive low-carbon growth potential at the same time that plays to our strengths.”
“RES’ established business capabilities and customer value proposition, as well as its entrepreneurial culture, are well suited to support VARO’s growth in biogas and leverage our leading operational and sourcing capabilities,” added Sanyal .
“This acquisition marks an important milestone for RES and reinforces our commitment to expand biogas production and consumption across Europe,” said Freek Smelt, CEO of RES. “Together with VARO, we will leverage our commercial capabilities and expertise to deliver certified renewable biogas and support customers in achieving their net zero goals. We look forward to being part of the VARO team to drive further growth in the biogas sector and create a sustainable future.”
In January 2023, Varo said it acquired an 80 percent stake in Bio Energy Coevorden BV (BEC) in the Netherlands to develop the largest biogas manufacturing facility in northern Europe. Following a planned expansion, the facility will double its current capacity to 650 gigawatt-hours (GWh) from 300 GWh by 2026, making it one of the three largest biogas facilities in Europe , according to a previous press release.
“Large-scale biogas installations play an important role in accelerating Europe’s energy transition, offering an alternative to conventional fuels at scale with 90 emissions. [percent] lower than natural gas, as well as allowing our refineries to replace their natural gas consumption with lower carbon-intensive biomethane products,” Sanyal said in an earlier statement. “Biogas growth will further support Europe’s energy security by diversifying supply.”
Biogas is generated by decomposing agricultural waste or sludge, such as manure and other organic materials, in anaerobic digesters and waste facilities or landfills. The biogas is then further processed to produce biomethane/bio-LNG or burned to generate electricity. Biomethane can be used interchangeably with natural gas. European demand for biogas is expected to triple by 2030, Varo said.
To contact the author, send an email to rteodoro.editor@outlook.com
