Target Information

CH4T, a biogas platform based in Verona, Italy, has successfully secured a €100 million non-recourse structured financing to convert seven biogas plants into 100% renewable biomethane facilities. This strategic transformation is part of CH4T's ongoing initiatives to bolster its position as a leader in the biomethane sector within Italy. Acquired by CH4T in 2024 after thorough technical and territorial analysis, these biogas plants are strategically located in the regions of Lombardy, Emilia-Romagna, and Friuli-Venezia Giulia.

The upgrades will enable the direct injection of biomethane into the Italian gas network as per the Feed-in Premium (FiP) system outlined in the regulatory Decree DM 22/2022. This regulation ensures a stable income stream over the next fifteen years, thus enhancing investment security for stakeholders involved in the project.

Industry Overview

Italy's renewable energy sector has been gaining traction, with a strong focus on transitioning to a low-carbon economy. The country's commitment to sustainability is reflected in its regulatory frameworks and the increasing appetite for renewable energy sources, particularly biomethane, which plays a vital role in achieving climate goals. The Italian government has implemented various incentives and regulations to support the development of the biomethane industry, thus paving the way for innovative projects like those undertaken by CH4T.

In a broader context, biomethane is becoming increasingly important for the decarbonization of the energy system, offering a viable solution to reduce greenhouse emissions while utilizing agricultural and livestock waste. With Italy's prime geographic position and its established agricultural base, the potential for growth in the biomethane sector is substantial.

As public and private sectors align towards a more sustainable future, investments in infrastructure that promote renewable energy sources are on the rise. The establishment of plants that convert biogas to biomethane is a strategic move that aligns with global energy transition trends.

Given the favorable regulatory environment and the increasing demand for clean energy alternatives, the outlook for the biomethane industry in Italy remains positive. The collaboration between financial institutions and innovative platforms will accelerate the implementation of sustainable projects, contributing to national and EU climate objectives.

Rationale Behind the Deal

The decision to finance the conversion of biogas plants into biomethane facilities stems from the growing need for renewable energy solutions within Italy. By transforming these facilities, CH4T aims to minimize carbon emissions and contribute to the country’s decarbonization goals. In addition, this investment aligns with a broader trend in the energy sector where sustainable practices are increasingly prioritized.

This strategic investment not only enhances CH4T’s operational capabilities but also provides long-term financial stability assured by the regulatory framework supporting the biomethane market in Italy.

Investor Information

Suma Capital is an independent asset manager based in Barcelona, actively investing in sustainable infrastructure through its SC Infra fund. With a presence in major European cities like Madrid, Paris, and Milan, Suma Capital is recognized as a leading player in sustainable investment across Europe.

Focused on essential infrastructures that facilitate energy transition and promote a circular economy, Suma Capital emphasizes purpose-driven capital investment. Their collaboration with experienced entities like BBVA and strategic platforms such as CH4T further underscores their commitment to investing in impactful and environmentally beneficial projects.

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The investment in CH4T represents a strategic opportunity within the burgeoning biomethane industry. With its innovative approach and commitment to sustainability, CH4T is poised to capitalize on the favorable regulatory landscape and increasing demand for renewable energy.

By converting existing biogas facilities into state-of-the-art biomethane plants, the project not only promises significant contributions to reducing carbon emissions but also fosters local economies by valorizing agricultural and livestock by-products.

Moreover, the structured financing approach ensures financial security for Suma Capital while reinforcing its dedication to impactful investments. The backing of financial institutions such as BBVA adds credibility and support to the initiative, aiding in the effective transition to a low-carbon economy.

Given these factors, this deal is viewed as a robust investment that is expected to yield both financial returns and positive environmental impacts, aligning with global sustainability goals.

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