Vibra Energia to buy 50 percent of ZEG Biogas

Brazilian fuel retailer Vibra Energia SA has announced its agreement to acquire 50 percent of ZEG Biogas, with the possibility of increasing the stake to 70 percent in the future, as it looks to expand its footprint on renewable energy.

Vibra said in a securities filing -  it will make an initial investment of 30 million reais ($5.63 million) on ZEG upon closing of the deal, which will also include a second instalment of 129.5 million reais.

It has also committed to invest up to 412 million reais in the company over the next few years for the execution of biogas and biomethane projects.

Vibra said ZEG Biogas has the potential to reach output of more than 2 million cubic metres per day in up to five years.

ZEG's production can be carried capturing biogas from landfills or through the biodigestion of agro-industrial residues such as sugarcane vinasse, it added.

The deal still requires approval from Brazil's antitrust watchdog.

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