Goldman Sachs confirms its commitment to fully enter the biomethane sector, the renewable gas produced from biogas created by recycling organic waste. The investment plan is being launched through the new entity Verdalia Bioenergy, with the first purchase operation unfolding in Spain.
Verdalia Bioenergy centers its strategy on committing more than 1,000 million euros to biomethane production facilities across Europe, with a strong emphasis on the Spanish market. The initial action in this roadmap is a deal with Aurea Green Gass to acquire a portfolio of development projects in Spain, totaling an annual capacity of 150 gigawatt hours (GWh).
Goldman Sachs is taking control of five biogas projects currently under development in Castilla y León, Cantabria, the Basque Country and Catalonia, with the ability to supply gas to over 15,000 homes. Public disclosures from both companies indicate that the biomethane facilities under this agreement will employ about 80 people and will cut methane emissions from the livestock sector by around 1,276 tons each year.
Consultants KPMG and Gomez-Acebo & Pombo participate in the operation, and Aurea Green Gass is expected to continue managing the plants. Aurea has set a target to reach biomethane production capacity of 1,000 GWh per year by 2030.
Goldman Sachs plan
Goldman Sachs begins its billion-dollar biomethane investment journey through Verdalia Bioenergy, a venture now under the stewardship of the finance group. Former Redexis executives Fernando Bergasa and Cristina Avila are prominent figures associated with the project; Redexis has historically been one of the largest gas network operators in the Spanish market, with Goldman Sachs holding a stake until 2018. Verdalia Bioenergy’s approach encompasses the development, acquisition, construction, and operation of biomethane plants across Europe, seeking to invest in both early-stage projects and larger operating assets.
Biomethane is a form of biogas derived from the breakdown of agricultural residues, animal husbandry byproducts, or wastewater, which is cleaned to be compatible with existing natural gas networks. Today, it is designed to work with current gas systems and infrastructure.
Biomethane in Spain
A recent report from the Spanish Gas Association, Sedigas, indicates Spain could produce up to 163 TWh of biomethane per year. Such production would meet roughly 45 percent of national natural gas demand last year and could save about 4 billion euros on consumer energy bills by reducing gas imports from abroad. In 2022, biomethane production was well below this potential, reaching less than 0.25 TWh.
To realize the full national potential for biomethane, Sedigas estimates suggest around 2,326 private facilities nationwide, compared with the six currently operating and approximately 200 projects that firms are planning. Building more than two thousand facilities would require roughly 40.5 billion euros in investment by 2030 and could create around 62,000 direct and indirect jobs linked to ongoing operation and maintenance.