International biogas group lines up equity raise 

A biogas developer and operator with plants across Europe and South Africa is looking to bring a co-investor into the business, it is understood. 

The biogas and biomethane sector has seen a sharp increase in investor appetite over the past 12 months – driven by spiralling natural gas prices brought on by Russia’s invasion of Ukraine and a Europe-wide refocusing on energy security – with Pioneer Point Partners and Davidson Kempner’s EUR 1.9bn sale of Danish biogas group Nature Energy to Shell in Q4 2022 a standout example. 

Now, Netherlands-based Green Create also appears to be looking into tapping into this appetite, with the group having appointed Green Giraffe to advise on on an equity raise for which it is mooted to be targeting securing around EUR 100m in fresh capital, according to market sources.

The exact parameters of the transaction are not yet known, but are likely to involve the disposal of a minority stake in the business, it is believed. 

The deal is understood to still be in its early stages, and is projected to run through H1 2023. 

In the Netherlands, the group has to date brought online the 2.5MW, 32,000 tonne-capacity Holwerd plant and the much larger Wijster facility, which is capable of processing 136,000 tonnes of chicken manure annually, which generates 3MW of electricity and 3.1MW of thermal energy, and produces 27MW of biomethane for injection into the local gas network.

The group has also brought online a biogas plant in Kent, in the UK, which produces up to 6.6MW of grid quality gas for injection into the regional grid, and is developing a further biogas project in Ghent, Belgium which will be able to produce up to 100 tonnes per day of bio LNG for the transport sector.

It owns and operates a further three waste-to-value plants in South Africa with over 12MW of installed biogas production capacity, and a final, smaller scheme in Mauritius.