Bankinter, Plenium raise EUR 76m to bolster Italian biomethane

Bankinter Investment and Plenium Partners have secured a EUR 76 million (USD 88.4 million) senior project finance facility from ING and UniCredit to refinance four biomethane projects in Italy.

Bankinter is Spain’s alternative investment manager and Plenium Partners is a renowned renewable energy investor.

The financing will consolidate the four projects into a single multi-borrower structure as the plants move into commercial operation. The facility comprises a senior term loan along with VAT and debt service reserve facilities.

The four plants, located across northern and central Italy and connected to the country’s gas grid, have a combined production capacity of around 1,800 standard cubic metres per hour (scm/h). The refinancing will also support their conversion from biogas to biomethane production.

ING and UniCredit acted as global coordinators, mandated lead arrangers and bookrunners, while ING will also serve as facility agent.

Once fully operational, the biomethane plants are expected to produce around 160 GWh of renewable biomethane annually, enough to meet the average yearly gas demand of approximately 10,500 Italian households.

The projects will use agricultural and livestock by-products as feedstock, helping turn organic residues into renewable gas. According to the companies, the facilities are expected to avoid around 31,500 tonnes of CO₂ emissions annually by replacing fossil natural gas.

The assets are owned through the Ecualia Capital fund and benefit from Italy’s feed-in premium support mechanism administered by GSE, the country’s renewable energy incentive agency.

The financing follows Bankinter Investment and Plenium Partners’ recent acquisition of Italian biomethane platform BG Holding through Ecualia Capital. The acquisition included two biogas plants that were being converted to biomethane and were nearing commercial operation.