Goldman Sachs launches Verdalia Bioenergy to invest €1bn in European biomethane projects

Goldman Sachs Asset Management through its infrastructure business has set up Verdalia Bioenergy to contribute to Europe’s decarbonization and energy security agenda.

Verdalia Bioenergy will invest more than €1 billion over the next four years to develop, acquire, construct, and operate biomethane facilities across Europe.

The new entity will invest in both early-stage development biomethane projects and larger operational assets to add substantial biomethane production capacity in the continent.

Tavis Cannell — Goldman Sachs Asset Management Infrastructure Global Co-Head said: “Goldman Sachs Asset Management has a long history of creating and building scaled players within the green energy space.

“We are excited to contribute to the energy transition bringing much needed biomethane supply to Europe, which will support the continent’s decarbonization and energy security agenda.”

Verdalia Bioenergy has already agreed to buy a portfolio of approximately 150GWh/year mid-stage biomethane projects, subject to regulatory approval.

Goldman Sachs Asset Management has partnered with Fernando Bergasa and Cristina Avila to position Verdalia Bioenergy as a major biomethane operator in Europe.

Fernando Bergasa — Verdalia Bioenergy Executive Chairman said: “Renewable gas will be a key tool for Europe to achieve its commitment to be carbon neutral by 2050.

“We are looking to acquire mid- to late-stage development projects and operational assets across Europe as we pursue our vision of developing Verdalia Bioenergy into a leading European player in the biomethane industry.”

The European Union has set a target of 370TWh of biomethane production by 2030.

Biogas and biomethane production have already provided over 210,000 green jobs in Europe and is saving 60 million tons of greenhouse gas emissions per annum, according to the European Biogas Association.

The infrastructure business within Goldman Sachs Asset Management has invested around $15 billion across market cycles since its inception in 2006.