Target Information

CH4T, a biogas transformation platform headquartered in Verona, specializes in converting biogas assets into state-of-the-art biomethane facilities. Recently, CH4T secured a non-recourse financing of 100 million euros from Suma Capital's SC Infra strategy to upgrade seven biogas plants into facilities producing 100% renewable biomethane. This funding underscores CH4T's commitment to sustaining operations that align with industry-wide decarbonization efforts.

Industry Overview in Italy

The biomethane sector in Italy has seen significant growth, driven by the country's strategic initiatives aimed at energy transition and carbon neutrality. Italy has set ambitious targets to reduce greenhouse gas emissions, including substantial investments in renewable energy sources. Local policies, such as the Feed-in Premium (FiP) system introduced through the Ministerial Decree DM 22/2022, have fostered an environment conducive to renewable energy projects, guaranteeing income stability for the next 15 years.

With seven biogas plants located across Lombardy, Emilia-Romagna, and Friuli-Venezia Giulia, the transformation of these facilities will enable direct injection of biomethane into the Italian gas grid. This capability is crucial for enhancing energy security and reducing reliance on fossil fuels while facilitating a greener energy landscape.

Moreover, the initiative signifies a growing alignment between public policy and private investment, highlighting cooperative efforts in advancing sustainable energy solutions. As the demand for clean energy rises, the biomethane sector is positioned to play a pivotal role in Italy’s pursuit of a low-carbon economy.

Rationale Behind the Deal

The decision to finance CH4T's project reflects an increasing prioritization of sustainable investment opportunities among fund managers. By transforming existing biogas plants, CH4T aims to enhance production capacity to over 295 GWh of biomethane annually, thereby preventing the emission of over 85,400 tons of CO₂ each year. This transformation not only supports environmental targets but also creates value through the valorization of agricultural and livestock by-products.

Investing in such projects aligns with global trends toward circular economies and energy resilience, fostering innovation in energy production while addressing pressing climate change concerns. The financing supports CH4T's goal to reinforce its standing as a leader in Italy’s biomethane sector.

Investor Information

Suma Capital is an independent asset management firm based in Barcelona, with operations also in Madrid, Paris, and Milan. It is recognized as a principal player in the European sustainable investment landscape through its SC Infra fund. Suma Capital is dedicated to investing in essential sustainable infrastructure projects that support energy transition and circular economies, reflecting a commitment to driving purposeful capital utilization.

By supporting CH4T, Suma Capital demonstrates its strategy to invest in initiatives that promote environmental sustainability while generating positive socio-economic impacts. Their partnership with CH4T and involvement in this financing reflects a broader mission to back clean technology deployments across Europe.

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This financing deal for CH4T substantiates its potential as a promising investment opportunity. The transformation of biogas plants to biomethane facilities not only aligns with Italy's energy transition objectives but also enhances the operational efficiency of existing resources, significantly reducing carbon emissions.

The backing from experienced financial partners like BBVA and the presence of a dedicated management team at CH4T reinforce the project's viability. With governmental support through regulatory frameworks, CH4T is well-positioned to leverage the growing market for renewable gas, thereby ensuring steady revenue streams.

Furthermore, Suma Capital's focus on infrastructure with a positive environmental impact indicates a strategic alignment with global sustainability goals, enhancing the investment's appeal. This aligns capital deployment with the need for climate action, presenting both ethical and financial incentives.

Overall, this investment represents a step towards fostering resilient and sustainable energy solutions, making it a sound choice for investors looking for impactful opportunities in the renewable sector.

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