On February 15th, the press release announcing a significant financial partnership with STX was issued. Please read the article below.
STX Group, a leading global firm in environmental commodities trading and climate finance, today announces the financing partnership with BioValue a major Dutch biomethane producer, for the construction and development of the Groengas Cothen biomethane plant. The new plant adds at least 80GWh of renewable natural gas capacity per year. This strategic move is aligned with STX Group’s mission to promote the energy transition and underscores the redefinition of market dynamics aimed at boosting project development in the renewable energy space.
The financing by STX Group ensures BioValue access to key capital but also provides flexibility, avoiding potential constraints from fixed offtake prices. Collaborating with Nationaal Groenfonds as the junior financier, STX Group goes beyond traditional offtake agreements: unlike traditional banking institutions, this financing model provides BioValue with exposure to the developing biomethane market, contributing to their strategic goals and long-term success.
“This agreement marks a significant milestone in the biomethane sector and showcases our ability to pioneer novel financing solutions,” says Sead Keric, Managing Partner of Renewable Gas at STX Group. “By combining BioValue’s operational expertise with our climate finance capabilities, we empower biomethane producers to focus on what they do best while addressing development challenges. In light of the developing nature of the biomethane market and the illiquid, less transparent markets, there is a pressing need for alternative financing solutions.”
“As a major biomethane actor running multiple plants in the Netherlands, we are determined to realize much-needed new capacity in line with Dutch biomethane targets and European Fit for 55 goals,” said Ids Schaap, Managing Director and Founder of BioValue. “Our commitment to reducing CO2 emissions and minimizing environmental impact aligns seamlessly with STX Group’s mission to drive sustainable practices in the renewable energy sector.”
The latest EBA report revealed European biomethane production rose by 20% in 2022 over the previous year. However, the EU dependency on natural gas imports went from 83% to 97%. Amidst the global push for sustainability, momentum is building in the biomethane sector, marked by surging industrial demand and capacity despite project development challenges.
The European Commission established a goal aiming to achieve 35 bcm of sustainable biomethane production by 2030, as an integral part of REPowerEU. “While we welcome the recent European Parliament’s recognition of biomethane contribution to the decarbonization of the transportation sector, establishing a fair and comprehensive legislative framework for accounting the role of renewable fuels would bring additional benefits to the market,” Keric commented.
About STX Group
STX Group is a leading global environmental commodity trader and climate solutions provider. For over 25 years, our teams have continued to be at the forefront of the global transition towards a low-carbon economy. Leveraging our long-standing expertise in accurately pricing pollution and emissions, we help cultivate trust in market-based solutions to the decarbonized economy.
Our trading and corporate climate solutions offerings ensure capital flows to thousands of projects that make the world a greener place, while providing corporations with certified proof-points of their contributions to environmental progress.
Headquartered in Amsterdam with offices in 13 countries worldwide, our global team, inclusive of Vertis and Strive, comprises of over 500 employees of more than 60 nationalities.
For more information, please visit stxgroup.com.
About BioValue
BioValue is a pioneer in the Dutch biogas market with multiple biogas installations throughout the country. By producing sustainable green gas from organic waste, fossil gas can be reduced, reducing the atmosphere’s CO2 levels.
BioValue’s vision is to grow in impact by producing as much renewable energy as possible. Currently, the strategic focus is set on Bio-LNG production. BioValue is actively engaged in the development of the world’s largest bio-LNG installation located in the dynamic port of Amsterdam.
The company is expected to grow in the coming year to a projected production of more than 300,000 MWh of Green Gas and Bio-LNG per year.