Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

by uma

LONDON (Reuters) – Fuel trader and refiner Varo Energy, owned by Carlyle and energy trader Vitol, told Reuters on Thursday it had bought an 80% stake in Dutch biogas maker Bio Energy Coevorden BV (BEC) with a view to doubling its capacity by 2026.

The deal follows advances by other oil firms into biogas, captured from organic waste in landfills or farms, including multibillion dollar acquisitions by BP and Chevron as the sector hunts for non-fossil fuel feedstocks for fuel production, power generation or heating.

The acquisition, which Varo said is its largest since 2015, was announced about a year after Dev Sanyal took over as chief executive officer of the company following three decades at BP where he last served as the head of gas and low carbon energy.

Varo, headquartered in Zug, Switzerland, declined to say how much it paid for the stake in the Dutch group, which it bought from STAK Grisbe and VanDrie Group. Those firms will continue to own 15% and 5% stakes, respectively, once the deal is closed, which is expected to happen in February.

“We are investing hundreds of millions of dollars … The transaction is in a very good neighbourhood, it straddles Holland and Germany,” which is a demand growth centre, Sanyal told Reuters.

In July, Varo said it would invest around $3.5 billion until 2026, with two-thirds of the money going to its sustainable energies business, while around $140 million per year will sustain capital expenditure in hydrocarbons.

Varo, which has pledged to become net carbon zero by 2040, wants to increase BEC’s capacity from 300 gigawatt-hours (GWh) to 650 GWh by 2026, which would make it one of the three largest biogas facilities in Europe with an investment of 65 million euros ($69.84 million).

($1 = 0.9308 euros)

 

(Reporting by Shadia Nasralla; Editing by Paul Simao)

 

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More