| Project Detail |
The Framework Loan will finance the construction and operation of a number of biomethane production plants in several regions in Spain over the period 2024-2028. The preliminary pipeline includes 34 greenfield projects for a capital expenditure of EUR 415m, at several degrees of maturity.
Additionality and Impact
The Project is in line with the InvestEU objective of developing the energy sector and sustainable bioeconomy.
The Project consists of the construction and operation of several anaerobic digestion biogas units. The facilities will produce biogas and upgrade it into biomethane, which will then be injected into the natural gas grid. The plants will utilize agricultural residues, mainly livestock manure from surrounding farms, as well as minor stakes of organic by-products from agro-industry and vegetal residues to produce biomethane and organic fertilizers (digestate).
The Project is fully aligned with key EU policies, namely the Green Deal and its Fit for 55 package, of achieving climate neutrality by 2050 and committing to cutting emissions by at least 55% by 2030. It also contributes to replacing fossil-based feedstock with renewable-based resources, while substantially contributing to reduction of (diffused) pollution from Agriculture, notably in terms of GHG emissions and groundwater potential pollution. In this sense, the Project is also aligned with the Global Methane Pledge (GMP).
The Project contributes to the EIB PPG on "Sustainable Energy and Natural Resources", addressing in particular pollution abatement, renewable energies, circular economy and broader environmental issues. The operation contributes 100% to the horizontal objectives of CA&ES (CA Mitigation and Circular Economy).
Based on the targeted pipeline of the operation, it is expected that a share of the operation will be located in Cohesion Regions, with a contribution in terms of CAPEX of 36% to less developed regions and 43% to Transition regions. In addition, it will contribute with a 4% in Just Transition regions. The Project will contribute to strengthening the economy in transition and less developed regions, offering quality employment in rural areas of Castilla y León, Castilla la Mancha, Extremadura, and other Autonomic Communities severely affected by rural depopulation.
The Project is eligible under article 309 (c) common interest and partially point (a) projects for developing less-developed regions of the TFEU.
The Banks financial contribution is considered excellent and valuable to the client, considering the long tenor of EIBs loan and the diversification of its financier base, being the first transaction entered by Nortegas with an International Financial Institution (IFI). An excellent financial contribution is achieved due to the customised terms, such as the longer availability period or length of financing. Additionally, by providing debt at attractive conditions, the EIB facilitates the companys transition towards decarbonisation.
The Project would not have been carried out to the same extent by the EIB without the InvestEU support.
Objectives
The aim is to enable Nortegas Renovables to advance in the development of renewable gases from waste to be injected into the existing gas grid.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 80 million
Total cost (Approximate amount)
EUR 415 million |
