FemoGas S.p.A., an Italian group at the forefront of agricultural biomethane production, and Infranity, a leading investment firm specialising in essential infrastructure, have announced a funding agreement to support the refinancing and construction of liquid biomethane plants with a total capacity of 0.5 TWh.
Acting as sole lender, Infranity has agreed to provide €145 million in committed financing to Iniziative Biometano S.p.A., a wholly-owned subsidiary of FemoGas, with an option to increase the facility by a further €100 million.
The biomethane produced by these plants will serve the European road and maritime transport sectors, promoting sustainable energy adoption across both industries.
Stefano Svegliado, co-CEO of FemoGas, said: “Thanks to this financing, we will be able to increase the production of liquid biomethane for heavy-duty vehicles and maritime transport by funding seven biomethane plants, three of which are already operational. This will allow us to double output from the current 0.25 TWh to 0.5 TWh by 2027.”
Stefano Bozzetto, founder and co-CEO of FemoGas, added: “This initiative will play a key role in supporting Italian agriculture and livestock farming — pillars of the Made in Italy agri-food sector. At the same time, the group will accelerate the production of chemical and organic fertilisers not derived from hydrocarbons. Together, these developments will prevent the emission of 400,000 tonnes of carbon dioxide into the atmosphere each year, equivalent to around 1% of total emissions from the Italian agricultural sector.”
Garbine Unda, investment director at Infranity, commented: “We are pleased to announce Infranity’s first investment in the biogas sector by partnering with FemoGas, a pioneering company in agricultural biomethane production. This is a strategic step in broadening our engagement in the energy transition, and we are confident this partnership will drive substantial growth and contribute to a more sustainable future. This transaction underscores Infranity’s ability to execute bilateral agreements and our strong presence in the mid-cap market.”
Infranity’s financing marks an initial step in strengthening FemoGas’ expansion strategy, which targets biomethane production of 1.5 TWh by 2030. Achieving this would avoid 1 million tonnes of CO₂ emissions annually, equivalent to approximately 2.5% of the emissions generated by Italy’s agricultural sector.
FemoGas was advised by Lazard as sole financial advisor and Chiomenti as legal advisor. Infranity was supported by Ashurst as legal advisor and Rina as technical advisor.
Infranity provides FemoGas with €245m financing to boost biomethane growth
