VARO Energy Group (VARO) has announced the acquisition of 80% of the shares in Bio Energy Coevorden BV (BEC) in The Netherlands, one of the largest biogas manufacturers in Europe.
VARO is acquiring the shares from the existing shareholders, STAK Grisbe, who will continue to own 15% of the business, and Van Drie Group, who will continue to own 5%. The transaction is expected to be completed in February 2023.
The transaction accelerates the ONE VARO Transformation strategy launched in July 2022, the company said. It added that it recognises a range of solutions and products are needed to help emitters to decarbonise and to protect Europe’s energy security. As part of the strategy, the company committed to becoming a leading producer of biogas in Europe, building its portfolio through both acquisition and greenfield developments.
As a result of this acquisition, the largest by VARO since 2015, and with VARO’s and BEC’s ongoing investment, the company is well-placed to meet growth in European demand for both biomethane, which is expected to increase 3X by 2030 across Europe, and bio-LNG, which is expected to grow by 10X in Germany by the end of the decade.
Commenting on the announcement Dev Sanyal, VARO CEO, said: “Last year we set out our ambitious ONE VARO Transformation strategy to be the partner of choice for customers in the energy transition and to be net zero by 2040. Today’s announcement is a significant step towards accelerating our strategy by building a leading position in biogas in Europe.
“The combination of this platform along with VARO’s integrated business model will not only contribute to our strategic growth but will also be highly value accretive to VARO. Largescale biogas facilities have an important role in accelerating Europe’s energy transition – offering an alternative to conventional fuels at scale with emissions 90% lower than natural gas as well as allowing our refineries to replace their natural gas consumption with biomethane products with a lower carbon intensity. Growth in biogas will further support Europe’s energy security by diversifying supply.”