VARO Energy to acquire biogas trading firm Renewable Energy Services
Switzerland-based VARO Energy is set to acquire Renewable Energy Services BV (RES), one of Europe’s leading biogas trading companies, in a move to strengthen its position in the burgeoning European biogas market.
The purchase of Renewable Energy Services, coupled with VARO Energy’s recent acquisition of an 80% stake in Bio Energy Coeverden (BEC), bolsters the Swiss firm’s integrated value chain, offering sustainable energy solutions to meet growing customer demand.
Biogas demand in Europe is expected to triple by 2030, while bio-LNG is projected to increase tenfold in Germany within the same period. These factors place biogas as a strategic growth sector for VARO Energy. Since 2013, Renewable Energy Services, which is based in The Netherlands, has emerged as one of Europe’s fastest-growing biogas suppliers and traders, with a growth rate exceeding 800% year on year.
In 2022 alone, Renewable Energy Services made a considerable impact across the ten European countries where it operates, sourcing 250,000 MWh of biogas, reducing GHG emissions by 60,000 tons. This reduction is equivalent to the energy consumption of 100,000 European households. Renewable Energy Services aims to source even more substantial amounts in 2023, targeting 1 TWh of biogas.
Freek Smelt – Renewable Energy Services Managing Director said: “This acquisition marks a significant milestone for RES and reinforces our commitment to expanding the production and consumption of biogas across Europe.
“Together with VARO, we will leverage our trading capabilities and expertise to deliver renewable certified biogas and support customers in achieving their net zero targets. We look forward to being part of the VARO team to drive further growth in the biogas sector and create a sustainable future.”
VARO Energy strengthens position in Europe’s booming biogas market with acquisition of Renewable Energy Services. Photo courtesy of VARO Energy.
In addition to sourcing biogas, Renewable Energy Services also ensures the smooth logistics of the biogas supply chain and helps customers navigate compliance and green certificates. The acquisition aligns with VARO’s commitment to deliver high-quality, sustainable energy solutions.
Dev Sanyal — VARO Energy CEO said: “We believe biogas is a key ingredient in the future European energy mix. The addition of RES to VARO’s diversified portfolio further enhances our sourcing and optimisation capabilities in biogas – one of the five strategic growth pillars that VARO has identified as offering the most attractive low carbon growth potential while playing to our strengths.
“Our customers want to decarbonise and to do so they need a partner able to provide them with reliable low carbon fuels with credible certification across the markets they operate in. RES’ established trading capabilities and customer value proposition, as well as their entrepreneurial culture, are well suited to supporting VARO’s growth in biogas and build on our leading sourcing and operational capabilities.”
Completion of the acquisition is expected in the third quarter of 2023, pending approval from relevant authorities.