EIB and InvestEU Back Nortegas with €80 Million to Boost Biomethane and Green Energy in Spain

EIB and InvestEU Back Nortegas with €80 Million to Boost Biomethane and Green Energy in Spain

(IN BRIEF) The European Investment Bank (EIB), with support from the InvestEU programme, has provided €80 million in financing to Nortegas Group for the development of biomethane plants and a digital operations centre in Spain. These projects aim to produce up to 3.5 TWh of renewable biomethane annually by 2030 using agricultural waste, reducing greenhouse gas emissions and replacing fossil fuels in the natural gas network. The initiative aligns with the EU’s REPowerEU plan to enhance energy security, decarbonise the economy, and promote the circular economy. This investment strengthens Spain’s position as a leader in renewable energy while creating jobs and supporting local economies.

(PRESS RELEASE) LUXEMBOURG, 30-Nov-2024 — /EuropaWire/ — The European Investment Bank (EIB), supported by the InvestEU programme, has extended a €80 million financing framework to Nortegas Group to boost renewable biomethane production in Spain. This funding will enable Nortegas Renovables, a subsidiary of the group, to construct biomethane plants and establish a digital operations centre. These initiatives align with the EU’s REPowerEU plan to enhance energy security, accelerate the green transition, and reduce dependency on fossil fuels.

Nortegas Renovables’ strategic plan targets producing up to 3.5 TWh of biomethane annually by 2030. The plants will leverage agricultural waste, including livestock manure and organic by-products, to generate renewable biomethane that will be integrated into the existing natural gas grid. This transition will decrease greenhouse gas emissions, reduce waste-associated risks, and contribute to Spain’s energy security.

The project also includes a digital operations centre to implement innovative waste management solutions, enhancing operational efficiency through cutting-edge technologies. Certified by Spain’s guarantee of origin system, the biomethane will ensure sustainability and substantial carbon emission reductions.

EIB President Nadia Calviño highlighted the initiative’s importance: “The EIB’s investment supports innovation in green fuels, a cornerstone of decarbonisation and industrial competitiveness. This effort strengthens Spain’s position as a leader in renewable energy.”

European Commissioner for the Economy Paolo Gentiloni emphasized the transformative nature of the project, which will multiply Spain’s biomethane capacity, foster sustainability, and bolster the circular economy while creating jobs and promoting economic growth. Energy Commissioner Kadri Simson added that biomethane is pivotal to replacing fossil fuels and increasing EU energy security, contributing to the REPowerEU plan’s objectives.

Nortegas Renovables General Manager Felipe Requejo stated: “This credit line provides crucial visibility for achieving our goal of generating 3.5 TWh/year by 2030, reinforcing our role as a key player in Spain’s decarbonisation and energy security.” CEO Javier Contreras expressed pride in the EIB’s trust, noting the operation’s significance in unlocking Spain’s natural gas network potential for a sustainable energy future.

Accelerating Spain’s Green Transition and Energy Security

This investment forms part of the EIB’s action plan under REPowerEU, which aims to mobilize over €150 billion in investments for energy security and sustainability by 2027. With support from InvestEU, the EIB has allocated over €21 billion in financing for energy projects across Europe in 2023, including €4.5 billion in Spain, driving progress in renewable energy, energy efficiency, and infrastructure development.

By bolstering biomethane production and promoting innovative energy solutions, this initiative underscores the EU’s commitment to sustainable development and energy independence, advancing a cleaner, greener future for Spain and Europe.

Background information

European Investment Bank

The EIB is the long-term lending institution of the European Union, owned by the Member States. It finances investments that further EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, consisting of the EIB and the European Investment Fund, reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. The EIB Group signed a total of €88 billion in new financing in 2023.

InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Nortegas

Nortegas Group is playing a key role in the sustainable energy transition by developing renewable gases and preparing its infrastructure to transport this kind of gas alone by 2050. This initiative strengthens Nortegas’ strong commitment to the energy transition, digitalisation and the circular economy, encouraging the widespread use of clean and sustainable fuels and promoting renewable gas-related initiatives and activities.

Nortegas views biomethane, green hydrogen and digitalisation as the focal points of its strategy and the transformation of its business model. It is positioning itself as a leader in tackling the energy landscape’s most pressing challenges.

Nortegas Renovables is the Nortegas Group subsidiary focusing on the development of biomethane production projects in Spain.

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Maite Cordero
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+34 606 66 82 62

Monica Faro
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+352 4379-71105

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SOURCE: European Investment Bank