Italian energy firm Eni said it would buy compatriot biogas producer FRI-EL Biogas as part of its broader decarbonization strategy.
Eni said in a statement its unit Ecofuel had reached an agreement with FRI-EL Greenpower, a Gostner family holding, to buy the biogas firm.
FRI-EL Biogas owns 21 plants generating electricity from biogas.
In addition, it owns a facility for processing the organic fraction of municipal solid waste which Eni intends to convert to produce biomethane.
When fully operational, the plant would supply over 50 million cubic meters per year to the network, according to Eni.
“This acquisition sees Eni strengthening its growth in the circular economy, laying the foundations to become the first producer of biomethane in Italy,” it said.
Moreover, Eni said the deal is part of its broader decarbonization strategy, which has the goal to eliminate all emissions from industrial processes and products by 2050.
The Italian firm aims to distribute biomethane both as LNG and CNG via its truck filling stations in Italy.
“With this deal, we have laid the foundations for strong growth in the biomethane sector, which will be distributed in Eni’s service stations, both as compressed natural gas and as liquefied natural gas,” Claudio Descalzi, Eni’s chief executive, said.
“This is a strategic business area for us on the path to completely eliminating our emissions, and represents a significant contribution to decarbonizing transport and our ability to offer sustainable products to our customers,” Descalzi said.
Eni added the agreement is subject to certain conditions precedent, including the authorisation of the relevant authorities.
