CIP takes final investment decision on 20 Italian biomethane projects

Copenhagen Infrastructure Partners has made a final investment decision on Via Verde, a platform of 20 Italian biomethane development projects, ESG News reported on 8 October. The investment runs through CIP's Advanced Bioenergy Fund II. Financial terms were not disclosed.

The portfolio is expected to produce about 1 terawatt-hour of biomethane a year once fully operational, equivalent to the annual gas consumption of roughly 60,000 Italian households, according to ESG News. Each facility is expected to process 60,000 to 100,000 tonnes of agricultural waste annually, implying a combined 1.2 million to 2 million tonnes a year across the 20 projects.

The projects are spread across several Italian regions, including Lombardy, Abruzzo and Campania. They would convert agricultural residues and other sustainable feedstocks into renewable gas that can replace fossil-based natural gas. Biomethane's compatibility with existing gas infrastructure can reduce the need for extensive network modifications, according to ESG News.

Via Verde is the first investment from Advanced Bioenergy Fund II, a vehicle targeting the development, construction and operation of biogas facilities across Europe. Andreas F. Brandt, a partner at CIP, said Via Verde "marks our entry into one of Europe's most attractive biomethane markets, giving us a strong foothold as Italy scales towards its 2030 biomethane targets."

Italy remains dependent on imported natural gas, which the reporting says leaves consumers exposed to international supply disruptions and price volatility. Locally produced renewable gas is framed by the reporting as a way to diversify supply while creating employment in agricultural communities. Public transition capital is active in the same market: Italy's sovereign green bond drew $129bn of orders for a $9.4bn sale in late September, per ESG Capital Daily's reporting.