In Italy, energy utility Edison S.p.A, an EDF Group company has announced that it has signed a long term biomethane purchase agreement (BPA) with Swizterland-headed cleantech company Kanadevia Inova AG.
Under the agreement which has a term of 15 years, Kanadevia Inova – previously known as Hitachi Zosen Inova AG (HZI) – will complete the construction of a biomethane aka renewable natural gas (RNG) plant by the first half of 2025.
Using agricultural by-products from the province of Cuneo as feedstock, the annual production volume of about 3 million Nm3 will be supplied to Edison.
Thanks to this agreement, Edison strengthens its position in the Italian and European green gas market, offering customers, particularly energy-intensive ones, a competitive solution that can reduce their exposure to the purchase of ETS securities. At the same time, it confirms its commitment to accompany its customers on the path to decarbonization through increasing shares of green gas, such as precisely biomethane and bioLNG, said Fabio Dubini EVP Gas & Power Portfolio Management & Optimization at Edison.
Main RNG player in Italy
Edison stands out in the Italian energy scene for its commitment to the integrated management of this energy carrier, from its production to its sale to the market.
Edison is the main player in biomethane in Italy: it currently covers one-third of the national market and, in 2023, purchased and managed more than 100 million Nm3 of RNG.
Since the construction of the first plants in the country in 2018, Edison has been helping producers sell biomethane on long-term horizons, withdrawing it from production sites and reselling it in the transportation sector.
With this transaction, and by generating energy from renewable resources, Kanadevia Inova enters the Italian biomethane sector while Edison further diversifies its portfolio with increasing shares of green gas, offering the possibility to accompany its customers on their decarbonization path.
This collaboration with industry frontrunner Edison is the final piece in bringing our vision of a true resource circularity, decarbonization, and sustainable energy supply to life. With the launch of our first wet anaerobic digestion plant under the DFBOO (design, finance, build, own, operate) model in Italy, we are able to close the cycle – transforming agricultural waste into valuable biomethane to support regional decarbonization and supply secure and sustainable energy. This proud milestone embodies Kanadevia Inova’s mission, ‘For a Future Free of Wasted Waste,’ and sets a bright new standard for potential projects ahead, said Keith Carr, EVP of Asset Management at Kanadevia Inova.
RNG is one of the pillars of the European Union’s energy transition, whose REPowerEU plan is to increase production tenfold to 35 billion Nm3 or 342 TWh per year.
Its environmental benefits include reducing greenhouse gas emissions, sustainable waste management, and supporting the circular economy. Like natural gas, it can be used for heating, electricity generation, as vehicle fuel, or be fed into the grid.
