Poland’s largest lender, PKO BP, and the country’s state development bank, BGK, have signed a consortium agreement to support investment in the biogas and biomethane sector.
The two institutions have granted a PLN 74 million (€17.4 million) loan to Neo Biofuel Energy, which will use the funds to purchase and develop agricultural biogas plants. The agreement also provides scope for additional financing of future projects.
As part of its 2025–2027 strategy, PKO BP aims to cover more than 20% of the banking sector’s expenditure on Poland’s energy transition.
“The biogas sector currently utilises only a few percent of its production potential in Poland. However, the prospects are very promising. Forecasts suggest that we can produce between 8 and 13 billion cubic metres per year and become one of the four leading producers of biogas and biomethane in Europe,” said Paweł Wojtowicz, head of BGK’s regional project financing office.
Neo Bio Energy will invest the loan in the development of three biogas plants in the Lublin and Silesia provinces, with a total capacity of 3.2 MW.
The company plans further investments, with the syndicated loan potentially rising to PLN 217 million (€51 million). This would finance seven projects with a combined generation capacity of 12 MW at acquisition, rising to 24 MW after expansion.
If current regulatory support for the biogas and biomethane sector continues, Neo Bio Energy intends to expand its portfolio of fermentation biogas plants to 23 installations by mid-2026, up from eight currently.
The loan agreement between PKO BP, BGK, and Neo Bio Energy was signed on 18 September 2025.
Polish banks sign €17.4m biogas financing deal
