Both companies join forces to contribute to decarbonisation and energy transition in Spain.
Suma Capital and Nippon Gases, a leader in the manufacture, treatment and purification of industrial and medical gases, have signed a strategic agreement for the development of biogas-to-biomethane upgrading projects. The joint venture created for this alliance will be Total Biomethane Solutions (“TBS”).
Nippon Gases will provide its expertise in gas treatment and purification technologies, as well as its experience in the operation and maintenance of gas production plants. The firm will contribute its experience as one of the most active financial investors in the development and construction of biogas and biomethane plants in Spain.
STB already has two pioneering projects in Spain with a combined production capacity of 52GWh of biomethane per year in a first phase, and up to 82GWh in a second phase.
The first of these, located in Aragon, will be the first upgrading plant in Spain to produce liquefied biomethane (BioGNL) for use as a clean fuel for road transport. Nippon Gases will be responsible for the construction and operation of the upgrading and liquefaction plant, while all the BioGNL produced will be purchased by Naturgy through a long-term BioGNL purchase contract. The second project, located in Cuenca, will have the particularity of being one of the few projects in Spain to inject biomethane directly into the Enagás transmission network. The planned investment for these two projects amounts to €10m and they are expected to come into operation during the second half of 2024.
In both cases, the producer of the biogas necessary for the production of BioGNL and biomethane will be the Gestcompost Group, a company in which Suma Capital has a stake through its sustainable infrastructure fund.
The biogas and biomethane projects to be promoted by STB have a key role to play in decarbonisation and the transition to a more sustainable economy. The biogas used in the upgrading process will be produced from organic waste, which will reduce the volume of waste that ends up in landfills and prevent the emission of methane into the atmosphere. In addition, biomethane, a biogas purified to natural gas quality, will allow its use as a clean fuel for applications requiring high energy quality, such as transport and industry. The projects in which STB will invest will promote local employment, the circular economy and the reduction of the carbon footprint.
This strategic agreement with Suma Capital demonstrates Nippon Gases’ commitment to the transition towards a more sustainable energy model. Thanks to this alliance, we will be able to apply our expertise in gas treatment and purification technologies to develop biomethane projects in Spain and contribute to the reduction of greenhouse gas emissions, said José Vicente Sánchez Navarro, Marketing and Business Development Director of Nippon Gases Spain.
This agreement with Nippon Gases allows us to expand our capacity to develop sustainable infrastructure projects in Spain and Europe. We believe that investment in biogas and biomethane has enormous potential to contribute to the energy transition and reduce greenhouse gas emissions, says Pablo de Muller, founding partner of Suma Capital.
Both companies will continue to jointly explore new projects through this strategic alliance.
The firm and Nippon Gases, a leader in the manufacture, treatment and purification of industrial and medical gases, have signed a strategic agreement for the development of biogas-to-biomethane upgrading projects.
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