Goldman Sachs Launches €1 Billion European Biomethane Business

Goldman Sachs Asset Management (GSAM) announced on Monday it has launched a biomethane business in Europe called Verdalia Bioenergy. The U.S. financial services giant said it aimed to invest more than €1 billion in the new business 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.

The EU aims to reach 370 TWh per year of biogas and biomethane by 2030, which needs an estimated €80 billion investment to increase production tenfold to reach that target.

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 Monday.

The new company signed an agreement in Spain to purchase a portfolio of biomethane projects with a total capacity of 150 GWh per year. They are in mid-stage development.

“We believe that biomethane is today one of the most compelling segments in the energy transition for infrastructure investors,” GSAM’s infrastructure business said.

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.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Critical Minerals, Ukraine, China in Focus During von der Leyen’s North America Trip

European Commission President von der Leyen has started her trip to North America as Brussels is preparing new legislation to secure raw material supplies and the future of its green technology industries. Von der Leyen is first visiting Canadian Prime Minister Trudeau, and after that she will meet Biden on Friday. As the EU is scrambling to end reliance on Russian fossil fuels and ramp up production of homegrown renewables, it will require more access to critical minerals, and that is where Washington and Ottawa come in. 

Tesla Made Graphite Deal with Syrah, Calms Supply Concerns

Tesla Inc. agreed to take the majority of battery ready graphite from a facility in Louisiana, as the company tries to secure supplies in a market dominated by China. The Vidalia plant in Louisiana is operated by Australian Syrah Resources Ltd. 

Hyundai to Break Ground in Georgia Plant on Oct. 25

South Korea’s Hyundai announced on Friday that it will break ground on Oct. 25 in its $5.5 billion electric vehicle (EV) and battery plant in the U.S. state of Georgia. The company plans to begin production with an annual capacity of 300,000 units by the first half of 2025. The company said the groundbreaking for the new plant is part of its “commitment of $10 billion by 2025 to foster future mobility in the U.S., including production of EVs,”

Stay informed

error: This content is protected !!