Green Investment Group acquires bioenergy platform

By Macquarie Asset Management | November 03, 2022

Macquarie Asset Management’s Green Investment Group, via its Macquarie GIG Energy Transition Solutions fund, has acquired BayWa r.e. Bioenergy GmbH from BayWa r.e. AG. 

BayWa r.e. Bioenergy is a specialist biogas platform. Active across the full asset lifecycle, the business develops, constructs and operates biogas projects which provide biomethane and power to local energy companies, industrial companies and energy traders. Its existing portfolio comprises five operational plants in Germany and a pipeline of development projects located across Italy. The business’s current operational assets produce a total of approximately 140 GWh of biomethane annually helping avoid 13.16 ktCO2e of GHG emissions every year.

The investment comes as the European Union looks to rapidly reduce its dependency on imported natural gas. REPowerEU targets the production of 35 billion cubic metres (roughly 350 TWh) of biomethane by 2030. Meeting this demand is expected to require the construction of 5,000 new biomethane plants across the EU and €80 billion in capital investment[1]. GIG intends to use these positive tailwinds to explore opportunities to grow the business’ presence in Germany, Italy and other existing and emerging growth markets in Europe. It will also seek to use the latest technology processes to enhance the platform – which could include the introduction of carbon capture and CO2 liquefaction that can be used for food-grade quality CO2.

"There are significant tailwinds in the European biomethane sector driven by the circular economy benefits of treating agricultural waste together with the need to decarbonize sectors which are hard to electrify,” said Chris Archer, co-head of GIG Europe. “As a locally produced, direct alternative to fossil fuel-based natural gas, biomethane is an attractive solution for corporate and industrial customers looking to decarbonize. With its track record and deep technical expertise, BayWa r.e. Bioenergy is already a leader in this rapidly growing sector, and we are excited to work with the business’s current partners to support the platform’s continued growth."

“GIG has played a leading role in driving the net zero transition and is well placed to take BayWa r.e. Bioenergy GmbH and its employees forward and to realize their growth potential,” said Matthias Taft CEO of BayWa r.e. “AG BayWa r.e. AG will focus on its core business of electricity generation from wind and solar energy.”