Axpo enters biomethane market in Portugal

03.04.2024 - Axpo has launched a biomethane project in Portugal that will use agricultural waste to produce more than 15 gigawatt hours of renewable energy a year. Axpo subsidiary Goldenergy, the country’s only energy provider to exclusively sell green electricity and gas, will purchase the plant’s entire production and inject it into Portugal’s natural gas network. The facility is due to commence operations in late 2025.

Axpo Iberia and Goldenergy have confirmed their entry into Portugal’s burgeoning biomethane market by signing an agreement to develop a production plant in northern Portugal. The agreement between the two Axpo subsidiaries, the municipality of Vila do Conde, and local farming enterprise Teixeira do Batel will see Axpo construct, commission and operate a biomethane production plant which will use agricultural waste from the farm to produce carbon-neutral green gas. The biomethane will then be fed into Portugal’s national gas network.

Ambitious biomethane target for Iberian Peninsula

With an initial investment of around 8 million euros, Axpo's first biomethane production plant in Portugal is expected to be operational in the fourth quarter of 2025. The plant will contribute to Axpo’s 2030 objective of achieving a total annual biomethane production on the Iberian Peninsula of up to one terawatt hour.

Under the agreement, Goldenergy will purchase all 15 gigawatt hours of the plant’s annual production during the project’s initial investment phase. The biomethane will add to the Portuguese marketer’s portfolio of 100% renewable gas made available to its customers.  

Axpo Iberia CEO Ignacio Soneira said: "The development of this plant marks our entry into the biomethane market in Portugal, strengthening our leading position in the renewable sector with Axpo’s latest contribution to environmental sustainability. The transformation of agricultural waste into biomethane converts this waste into energy, which can be consumed directly on the farm itself or injected into the gas grid."

Goldenergy CEO Miguel Checa said: "Renewable gases can play a key role in decarbonisation while also helping meet wider targets for the consumption of energy from renewable sources. Goldenergy is committed to purchasing from Axpo all the biomethane produced by this new plant and making it available to our customers. This is a good example of our continuing contribution to the so-called circular economy by converting waste into energy.”

The administrator of Teixeira do Batel, José Luís Teixeira, added: “This investment is very positive for the farm. It will reduce its environmental impact by transforming what would normally be only natural fertilisers into energy, which can be consumed on a daily basis in Portuguese households.”