Renewable gas company CycleØ has acquired Spanish waste management facility Grupo Azón Ramón y Cajal S.L. (GARYC), marking its first move into converting municipal waste into biomethane. The deal is part of a €200 million expansion aimed at increasing renewable gas output across Spain.
Located in Albarreal del Tajo, Toledo, GARYC currently processes around 121,000 tonnes of liquid and solid waste annually, primarily from Madrid and surrounding areas.
With the acquisition, CycleØ plans to upgrade the facility to produce around 3.7 million cubic metres of biogas per year by 2027 - equivalent to 26 GWh - enough to meet the gas needs of approximately 4,000 homes.
The gas will be purified into biomethane and delivered to the Spanish grid via virtual pipeline.
CycleØ, which already operates three biogas plants in Spain and manages the country’s first private biomethane injection point, says the acquisition strengthens its ability to operate across the entire renewable gas value chain.
The company is backed by Ara Partners, a private equity firm focused on industrial decarbonisation.
“This is a significant step in our strategy to scale up renewable gas production in Spain, now expanding from agricultural to industrial waste sources,” said CycleØ CEO Laurence Molke. “The GARYC facility offers a valuable platform for that transition.”
Spain has set an ambitious target of reaching 10.4 TWh of annual biomethane production by 2030 under its Hoja de Ruta del Biogás. Industry players see converting organic municipal waste - a major source of methane emissions - into renewable gas as key to reaching that goal.
Christopher Picotte, Partner at Ara Partners, called the project “a meaningful example of how waste conversion can reduce emissions while strengthening domestic clean energy supply.”
CycleØ plans to retain GARYC’s workforce as it scales up operations. “The GARYC team brings deep experience in waste processing that will be vital as we invest in expanding the plant’s capabilities,” said Jordi Berengué, CycleØ’s managing director for Spain.
Plant director Pedro Azón Ramón y Cajal, who co-founded the facility with his brother in 2009, welcomed the partnership: “This ensures GARYC’s legacy continues, while opening the door to new investment, job security, and environmental progress.”
The acquisition is expected to support Spain’s broader energy transition while reinforcing CycleØ’s ambition to operate up to 30 biogas facilities across the country.
