French utility Engie and European investment firm Mirova have signed a strategic partnership agreement in the biogas sector, inspired by a development model normally associated with wind and solar energy.
Mirova, a subsidiary of Natixis Investment Managers specialising in responsible investment, is acquiring a 50% stake in Dana Gaz, which already runs nine operating units (seven biomethane production plants with an installed capacity of 15.5MWg and two cogeneration plants with an installed capacity of 2MW), developed and constructed by Engie.
Through its subsidiary Engie BioZ, this partnership enables Engie to accelerate the development of its biomethane projects by increasing its investment capacity in this activity.
It builds on a longstanding relationship between Mirova and Engie, developed over several years, notably through several wind, solar and hydroelectric projects in Europe.
Engie will continue its front-line industrial involvement at these facilities by continuing to operate them.
It is thus further developing its project portfolio with the aim of producing 5TWh of biomethane of guaranteed French origin by 2030.
Here, Rosaline Corinthien (pictured left) , CEO of ENGIE France Renewables, explains the strategic importance for Engie of this partnership.
In what ways is the partnership agreement between Engie and Mirova strategic and unique?
It’s a first in the biogas sector: Mirova and Engie are duplicating a business model which has proved itself in the wind and solar energy sectors and applying it to this sector. The model is known as DBSO, which stands for Develop, Build, Sell & Operate.
In the most competitive markets, it will enable Engie to improve the competitiveness and the profitability of its offers by partially selling its renewable assets to financial investors after construction while retaining industrial control of the assets.
Engie will continue to its front-line industrial involvement at these facilities by continuing to operate and maintain them and manage their human resources.
What is the benefit for Engie?
Engie’s strategy is to intensify the development of the biogas sector in France. This partnership will enable us to increase the development potential of our portfolio of biomethane projects tenfold and support the group’s ambition to produce 5 TWh by 2030.
Is ENGIE strengthening a long-term partnership with Mirova in renewables?
Yes, Mirova is already our partner in wind and solar energy. It is investing through its Mirova Eurofideme 4 fund dedicated to energy transition in Europe and is acquiring a significant position in biogas in France.
Through this partnership, we are demonstrating our conviction that biogas is at the heart of the energy transition of the French regions