Tages Helios Net Zero Completes First Investment in Biomethane Production

Tages Capital SGR, an asset manager specializing in alternative investment funds and the second largest photovoltaic operator in Italy, has announced that it has completed the acquisition of a portfolio consisting of four biogas production plants. The facilities are expected to be transformed into biomethane production plants by 2026. The investment is the first foray into the biomethane sector for the Tages Helios Net Zero fund, which recently closed with a total close of €375 million, with the majority of funding coming from institutional investors.

The newly acquired portfolio consists of four operational plants located near Pavia and Cremona, with a total capacity of approximately 4 MW. Each plant is expected to produce approximately 300 standard cubic meters per hour (Smc/h) of biomethane, and once fully operational, the entire portfolio will produce more than 2 million Smc of biomethane per year.

The biomethane will be produced by processing livestock manure and agricultural by-products not suitable for human consumption. This includes manure from pigs, cattle and poultry, as well as triticale, bran, cereals and silage obtained from local farms, thus ensuring a virtually zero supply chain. Anaerobic digestion of these materials will produce digestate that can be used as a natural fertilizer.

Umberto Quadrino, Chairman of Tages SpA and Chief Investment Officer of Tages Capital SGR, stressed that biomethane can be used for various purposes, such as power generation, unlike other renewable energy sources such as solar and wind, which are produced intermittently due to natural factors. This makes biomethane a programmable renewable energy source, as its availability can be controlled and adjusted according to demand. In addition, biomethane is a flexible resource, as it can be injected into the same grid that supplies natural gas.

Quadrino said the company is committed to further investments to develop an industrial-scale portfolio that is aligned with the strategic objectives of the Tages Helios Net Zero Fund.