Axpo enters biomethane market in Italy

12.09.2024 - Axpo has given the green light to its first biomethane project in Italy, it was announced today. Located in the southern region of Basilicata, the plant will produce approximately 45 GWh of renewable energy a year and is expected to start operations by the end of 2025. The plant will be constructed in the municipality of Grottole and mainly use agricultural waste from neighbouring farms to produce carbon-neutral green gas. This will then be fed into Italy’s national gas network.

The transaction between Axpo and an Italian project developer was closed at the beginning of September 2024, with parties agreeing not to disclose details of the sale price. A consortium of Italian companies led by Atzwanger SpA and BiHcon have already been selected as engineering, procurement and building contractors and will begin construction of the plant this month. BiHcon is the technology provider, responsible for the anaerobic digestion section. The biogas will be injected into Italy’s national gas distribution network, contributing to the country’s energy needs and supporting decarbonisation.

Axpo Head of Biogas International Véronique Abrate said: “Renewable gas is playing a key role in decarbonisation and advancing the global energy transition, so we’re thrilled to launch this milestone greenfield project in Italy. Axpo has an ambitious business growth strategy for biogas across Europe, and will continue to systematically implement it, one project at a time.”

Axpo Italia President Salvatore Pinto added: “The biomethane market in Europe is expected to nearly double in the coming decades, from approximately 21 billion cubic metres today to more than 35 bcm by 2030. Our Grottole project puts biomethane on the renewable gas map in Italy and we look forward to continuing to work closely with local communities, authorities and business partners in its successful development.”

Axpo has extensive experience in operating biomass and biogas facilities. In Switzerland Axpo is the leading company in the dry fermentation of organic waste, with 15 biogas plants producing renewable energy and nutrient-rich natural fertilisers. 

Elsewhere in Europe, Axpo is also pioneering the development of biogas facilities. In Spain, for example, the Torre Santamaría dairy cattle farm uses its livestock manure to produce biomethane. The plant currently injects 26 gigawatt hours of biomethane into the gas grid every year and in future will more than quadruple its annual biomethane production to 115 GWh. In April 2024, Axpo also entered the biomethane market in Portugal with the launch of a 15 GWh project due to begin operations by the end of 2025.