Eni agrees to acquire FRI-EL Biogas Holding
Italy-headed oil and gas major Eni S.p.A. has announced that its subsidiary Ecofuel SpA, the company responsible for managing Eni’s investments in the circular economy, and renewable power developer FRI-EL Green Power Group, a Gostner family holding, have reached an agreement for Eni to acquire FRI-EL Biogas Holding S.r.l., a leading Italian biogas producer and subsidiary of FRI-EL Green Power Group.
FRI-EL Biogas Holding owns and operates 21 biogas power plants in Italy and a plant for processing the organic fraction of municipal solid waste (OFMSW). The latter plant Eni intends to convert to produce biomethane.
Once fully operational, it will supply over 50 million Nm3 per annum of biomethane (aka renewable natural gas – RNG) to the gas network.
Part of Eni’s biomethane growth strategy
This acquisition sees Eni strengthening its growth in the circular economy, laying the foundations to become the first producer of biomethane in Italy.
The deal is part of Eni’s broader decarbonization strategy, which has the goal to eliminate all emissions from industrial processes and products by 2050.
It is one of the levers for rapid growth in renewables production, which is aimed at providing customers with a growing share of green liquid biofuels and biomethane, and will be integrated with the increase in Eni service stations supplying CNG (compressed natural gas) and LNG (liquefied natural gas) to the Italian network.
With this deal, we have laid the foundations for strong growth in the biomethane sector, which will be distributed in Eni’s service stations, both as compressed natural gas and as liquefied natural gas. This is a strategic business area for us on the path to completely eliminating our emissions and represents a significant contribution to decarbonizing transport and our ability to offer sustainable products to our customers. It provides a new and significant level of substance to continue on the path outlined in our strategy, said Claudio Descalzi, CEO of Eni.
The agreement, the value of which has not been disclosed, is subject to certain conditions precedent, including authorization from the relevant authorities and antitrust bodies.