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Poland's Biomethane Boom: First Syndicated Deal Boosts Production

Poland's biomethane market just got a major boost. A PLN74m deal will fund new biogas plants, while the Sudzucker plant's connection to the grid expands infrastructure. The country is on track to reach its ambitious 2035 production goal.

,   and  Administrator
2 min read
It is an agriculture land many plants are plotted into the ground and in front of of the field...
It is an agriculture land many plants are plotted into the ground and in front of of the field there is a machine, it is spelling the water on the crops and behind the machine there are huge trees and behind the trees there are other types of crops.

Poland's Biomethane Boom: First Syndicated Deal Boosts Production

Poland, a leading biomethane market in Europe, has seen significant growth in its biogas and biomethane sector. A recent development is the first syndicated deal in this sector, valued at PLN74m ($20m), which will fund Neo Biofuel Energy's purchase and development of agricultural biogas plant installations. This deal is set to boost Poland's biomethane production, with potential to reach around 5 bcm a year by 2035.

Poland's biogas and biomethane market is thriving, with the country opening its first industrial scale biomethane plant recently. While the exact details of the first syndicated deal in this sector are not clear, a notable example is the deal involving PGE Polska Grupa Energetyczna in 2022. PGE, a major energy provider, secured significant financing for its biogas and biomethane program, involving both international and Polish banks. Potential banks involved in such deals include PKO Bank Polski, Bank Pekao, mBank, and others. Neo Biofuel Energy, the recipient of the PLN74m deal, is targeting seven projects with a generation capacity of 12MW. Meanwhile, Gas distribution system operator Polska Spolka Gazownictwa has connected the 45MW Sudzucker plant to its network, further expanding Poland's biomethane infrastructure. The Sudzucker plant, Europe's largest sugar refiner, will produce biomethane from sugar beet residue and inject surplus into the grid via a 9km pipeline. Neo Biofuel Energy's investment will be used for three biogas plants in Lublin and Silesian Voivodeships, with a total capacity of 3.2MW.

Poland's biogas and biomethane sector continues to grow, with the first syndicated deal marking a significant milestone. This deal, along with other investments like the Sudzucker plant, is expected to contribute to Poland's goal of producing around 5 bcm of biomethane a year by 2035. As the sector develops, more deals and projects are anticipated, further cementing Poland's position as a top biomethane market in Europe.

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