Advanced BioFuels USA

(Biofuels Central) VARO Energy to develop the largest biogas manufacturing facility in Northern Europe, boosting Europe’s security of supply and accelerating the energy transition.

VARO Energy Group (“VARO“) announces the acquisition of 80% of the shares in Bio Energy Coevorden BV (BEC) in The Netherlands, one of the largest biogas manufacturers in Europe. VARO is acquiring the shares from the existing shareholders, STAK Grisbe who will continue to own 15% of the business, and Van Drie Group, who will continue to own 5%. The transaction is expected to be completed in February.

Transaction highlights:

• Developing the largest biogas manufacturing facility in Northern Europe: double the current facility capacity from 300 GWh to 650 GWh by 2026. After the expansion, the site will be among the 3 largest biogas facilities in Europe.
• High impact on GHG emissions:
  • Feedstock from waste streams and manure, achieving 220,000 tonnes per year of CO2 reduction versus fossil natural gas
  • Step towards achieving net zero scope 3 emissions by 2040 target
  • Supports circular economy and new employment opportunities
• Accessing rapid growth market: ideally located on the border between The Netherlands and Germany, close to major industrial centers and large-scale agriculture offering both feedstock supply and demand growth. This investment will accelerate the energy transition in these leading countries.
• Highly efficient, cost competitive plant: BEC has built a successful industrial biogas facility, including state-of-the-art monitoring and control systems, heat optimization and recovery systems.
• Building integrated fuel value chain: leverages BEC’s large-scale manufacturing competencies with VARO’s integrated business model of energy sourcing, production, and exposure-management, while building one of the largest biogas manufacturing facilities in Europe.
• Supports energy security and energy transition: boosts energy security by diversifying Europe’s sources of supply while accelerating the energy transition by replacing conventional fuels with low carbon alternatives.
• Progress against VARO’s new strategy: meets 65% of VARO’s 2026 target of 1 TWh of biomethane / bio-LNG under its ONE VARO Transformation strategy launched in July 2022. The acquisition will have a substantial contribution of 20-25% of VARO’s Engine 2 (Renewable energies) EBITDA by 2026.
• Future Growth: this acquisition creates a platform for our future growth in the biogas industry in Europe

The transaction accelerates the ONE VARO Transformation strategy launched in July 2022.

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Biogas has an important role to play in providing customers in harder–to-abate sectors such as heavy-duty transportation and shipping with a cost-competitive and low-carbon fuel supply. It also plays an important role in the decarbonisation of the agricultural sector and contributes to a circular economy,

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BEC will be run on independent basis and Van Drie Group and STAK Grisbe (the Jacobs family) will hold respectively 5% and 15% post transaction. READ MORE