Anaergia and Capwatt break ground on first of nine Italian biogas plants, cementing €60m green energy partnership

Anaergia Inc., a Canada-based renewable natural gas (RNG) technology company listed on the Toronto Stock Exchange under the symbol ANRG, has taken a critical step in its European expansion strategy by formalizing a C$7.3 million agreement with Capwatt Biomethane Unipessoal, Lda. This contract will see the development of the Metanext anaerobic digestion facility in central Italy, a project designed to convert agricultural waste into high-grade biomethane. Scheduled for commissioning by the end of June 2026, the facility will produce an estimated 7.6 million cubic meters of biomethane annually.

The Metanext facility is the inaugural project in a larger agreement involving nine facilities. The total contract value is projected to exceed C$60 million over a 30-month period. This development formalizes a previously signed Letter of Intent (LOI) between Anaergia and Capwatt, announced on April 21, 2025, and transitions the LOI into tangible implementation. Anaergia’s Italian subsidiary, Anaergia S.r.l., will spearhead the design and construction using the company’s proprietary high-efficiency anaerobic digesters and waste recovery systems.

This announcement positions both companies at the forefront of Europe’s drive to expand biomethane production and reduce greenhouse gas (GHG) emissions through renewable energy solutions derived from organic waste.

How Will the Metanext Biogas Facility Contribute to Europe’s Energy Transition?

As energy security and environmental sustainability become increasingly critical in European policy, biomethane is gaining momentum as a renewable alternative to fossil fuels. The Metanext facility’s role in converting agro-industrial waste into usable biomethane aligns with the European Union’s broader climate objectives under the REPowerEU plan, which aims to increase domestic biomethane production to 35 billion cubic meters by 2030.

By tapping into anaerobic digestion, a process that decomposes organic material in an oxygen-free environment, Anaergia and Capwatt aim to demonstrate how waste-to-energy infrastructure can offer both climate and economic benefits. The use of agricultural and food-processing waste as feedstock not only reduces landfill usage and methane emissions but also contributes to the circular economy by generating renewable gas and nutrient-rich digestate.

Capwatt’s CEO Sérgio Rocha remarked that the project is a major milestone in the company’s sustainability roadmap, citing its role in driving the European energy transition. The Metanext plant’s projected output represents meaningful progress toward Italy’s national biomethane goals and showcases the kind of cross-border collaboration needed to scale green energy.

What Are the Strategic Implications for Anaergia’s Global Growth Plans?

Anaergia’s decision to lead the design, construction, and delivery of the Metanext project through its Italian subsidiary reinforces its integrated project delivery model. The company has developed over 100 waste-to-energy projects globally, with more than 250 patents backing its technology suite. Its approach integrates multiple steps—solid waste processing, organics recovery, anaerobic digestion, and biomethane upgrading—into unified, turnkey facilities. This model enables the company to address regional sustainability goals while also generating recurring revenue streams.

CEO Assaf Onn described the Metanext agreement as a strategic breakthrough that transitions the Capwatt LOI into execution. He also pointed to Anaergia’s ability to manage multiple project timelines simultaneously, a critical competency given the complexity and scale of the nine-plant buildout envisioned under the partnership.

This deal helps Anaergia further diversify its international footprint beyond North America. The company is targeting markets where legislative support for RNG adoption is robust, particularly in the European Union where green energy incentives and waste diversion laws are accelerating demand for anaerobic digestion infrastructure.

What Is the Financial and Market Sentiment Around Anaergia’s Stock?

Anaergia Inc. (TSX: ANRG; OTCQX: ANRGF) has seen a volatile trading pattern over the past year, reflecting broader uncertainty in the cleantech and waste-to-energy sectors. As of May 20, 2025, Anaergia stock remains below its early 2024 levels but has gained some institutional interest following the April LOI announcement with Capwatt. The finalization of the first project contract has been seen by analysts as a validation of Anaergia’s execution capabilities, particularly its engineering depth and ability to operationalize multi-site agreements.

Institutional flows have trended modestly positive since Q1 2025, with some fund managers repositioning around RNG growth potential in Europe. That said, broader investor sentiment remains cautious given Anaergia’s ongoing need to manage capital expenditure and project delivery timelines effectively while navigating currency and regulatory risks in its overseas operations.

Market watchers have suggested that if the company can meet its delivery milestones for the first few facilities under this nine-project plan, it could trigger a re-rating of its long-term revenue visibility. Analysts have issued a mixed outlook, with some maintaining a “hold” due to execution risk, while others have assigned a “speculative buy” rating, contingent on progress in Europe and potential new contracts in Asia or Latin America.

Why Are Capwatt’s Involvement and Pan-European Strategy Important?

Capwatt, headquartered in Portugal, is a growing player in the renewable energy space with operational footprints in Spain, Italy, Mexico, and its home market. Its pivot to biomethane reflects a strategic expansion into high-impact climate infrastructure. The company’s decision to contract Anaergia for nine facilities, starting with Metanext, indicates a significant commitment to biomethane as a core pillar of its decarbonization roadmap.

By concentrating on agro-industrial waste as feedstock, Capwatt is aligning its investments with regulatory trends in food waste recycling, landfill bans, and circular economy mandates across the European Union. The partnership with Anaergia also allows Capwatt to access mature engineering systems without building a new supply chain, thereby accelerating time-to-market for each project.

This collaboration is particularly noteworthy given that both firms are focused on long-term environmental and financial returns, a dynamic that could serve as a replicable model in other EU member states aiming to meet their renewable gas targets.

What Are the Broader Implications for Renewable Gas in the Global Energy Mix?

Anaergia’s and Capwatt’s collaboration on the Metanext project arrives at a time when renewable gas is gaining increased attention as a scalable climate solution. As countries work to phase out coal and reduce dependency on imported fossil fuels, biomethane offers a compelling alternative that can integrate into existing natural gas infrastructure.

Unlike wind or solar, which face intermittency issues, renewable natural gas offers dispatchable energy with stable outputs. This makes it particularly useful for industrial applications, power grid balancing, and even transport fuels. Furthermore, anaerobic digestion addresses multiple challenges at once—managing organic waste, reducing methane emissions from landfills, and generating clean fuel.

For investors and policymakers alike, projects like Metanext highlight how private sector innovation, when aligned with public sector policy frameworks, can deliver tangible climate outcomes and open new markets for green infrastructure financing.