Zenith Energy to acquire Italian biogas developer
In Italy, Zenith Energy Ltd has entered into a binding Letter of Intent and Exclusivity for the acquisition of 100% of the issued share capital of an Italian biogas development, which owns the rights to develop a fully permitted and engineered biogas production facility in Italy, subject to completion of the proposed acquisition.
The project is fully permitted, fully engineered and construction-ready, with all material permits, licenses and engineering approvals already obtained. Once operational, the project will produce approximately 3 million cubic metres of methane gas per annum, for injection into the Italian gas network, sold at Italian gas prices and benefiting from 15-year government incentives.
A long-term feedstock supply contract with a major Italian regional authority, comprising approximately 50% municipal waste and 50% agro-industrial waste, significantly mitigates what is widely regarded as the principal operational risk associated with biogas projects. This provides the Project with a stable and secure long-term feedstock supply, supporting predictable operations and facilitating access to project financing.
Category: Fuels
