European Energy Efficiency Fund teams with a Latvian energy company and developers to finance a biomethane production plant in Latvia
The European Energy Efficiency Fund (eeef) is pleased to announce collaboration with Latvian energy company Virsi-A and their partners on financing and development of a biomethane production plant in Latvia. This initiative will see eeef providing a senior loan facility to support the development of the plant, which will contribute to Latvia's renewable energy capacity. The project will benefit from extensive combined experience of Virsi-A and the development consortia in commodities trading, gas and energy industry and project management. eeef's involvement in the project aligns with its mission to foster green energy initiatives and support the transition towards a low-carbon economy.
The new biomethane plant, scheduled to commence operations in the second half of 2025, will utilize closed anaerobic digestion technology, converting agricultural manure into biomethane. The design of the facility envisages integration of a food grade CO2 liquefaction module, which will further enhance the circular nature of the project. A company headquartered in Germany and having more than 20 years of track record of successfully delivering over 300 biogas/ biomethane turn-key projects, has been chosen as the main construction partner.
Feedstock for the plant, more than 200 thousand tonnes per annum, will be sourced from over 15 local farms. The plant will not only produce a fully renewable source of energy and generate additional revenue stream for the farmers, but also will provide a sustainable method of waste management recovering methane from the manure that would otherwise be released in the atmosphere from the open-air manure lagunes.
The biomethane generated will be injected directly into the national gas transmission grid. The plant’s designed nominal capacity is 60 GwH and is expected to replace up to 5.6 million cubic meters of natural gas annually.
“Since its IPO in 2021, Virši has made significant steps toward a more diversified and sustainable business model for the company and its shareholders. These steps include developing an electricity trading business segment, increasing the network of stations offering compressed natural gas as an alternative fuel, and establishing a powerful network of electricity charging points across Latvia.
The development of a biomethane production plant is the next strategic step for the company to further strengthen and diversify its business model. We believe that biomethane will play a key role in making the transport segment more sustainable in the future, which, in turn, will ensure strong demand for this product in the coming years,” says Jānis Vība, Chairman of the Board at Virši.
Biomethane is a vital component of the European Union's broader strategy to achieve energy independence and transition towards a sustainable energy future. This project and similar projects throughout Europe contribute to avoiding wasted methane release in the atmosphere from the agricultural sector and at the same time reduce reliance on imported natural gas.
“Renewable biomethane production from waste not only promotes increase of local green energy and independence from fossil fuels, but also enhances waste management at a national level. Moreover, becoming a biomethane producer can significantly improve a company's image. The role of biomethane has grown substantially in both the heating and transport sectors. It is gratifying to see new companies entering this sector, as their growth drives progress in various other fields—innovation, job creation, agricultural sector development and emission reduction,” says Kristīne Veģere, Member of the Board of the Biogas Association.
eeef continues to demonstrate its ability to bring partners from various industries to work towards green energy and energy efficiency mission, and in this instance fosters the development of the emerging biomethane production industry in Latvia.
About AS VIRŠI-A
Virši is a rapidly growing local energy commodities trader and convenience store network with 29 years of experience. Currently, Virši has 80 sales points, 77 of which are service stations, and employs more than 800 people across Latvia. Since 11 November 2021, the shares of AS VIRŠI-A have been listed on the Nasdaq Riga First North Alternative Market.
About European Energy Efficiency Fund (eeef)
The European Energy Efficiency Fund (eeef) is dedicated to supporting energy efficiency and renewable energy projects across Europe. Established by the European Commission, eeef provides financial and technical assistance to projects that contribute to the EU's climate and energy goals.