Xebec Adsorption Inc, the global provider of gas purification solutions for the industrial, energy and renewables marketplace, has signed an exclusive Market Development and Commercialisation Agreement with Sapio Group.

Sapio Group is the largest industrial gas company in Italy. It’s business model includes the production and distribution of bio-liquefied natural gas (bio-LNG) throughout Italy. After an extensive supplier evaluation process, Sapio chose Xebec as its biogas upgrading partner for bio-LNG facilities to be built by Sapio. The expectation of both parties is that 30 to 40 bio-LNG facilities will be built over the next 3 to 5 years. Xebec will provide the biogas upgrading units, including CO2 reduction module, that will lower the CO2 content in the product gas down to 50 ppm, allowing for on-site liquefaction of the renewable natural gas and conversion into bio-LNG.

Emerging biogas upgrading market

On 1st March, 2018, the European Commission under EU State aid rules approved an Italian support scheme for the production and distribution of advanced biofuels, including advanced biomethane, in the amount of €4.7bn ($5.5bn).

On 2nd March, 2018, the day after the EU cleared the programme, Italy’s Economic Development Ministry (MISE) signed two new energy decrees which include measures to aid large gas consumers as well as incentives for biomethane in transport for the €4.7bn ($5.5bn) previously approved.

By 15th March, 2018, Italy’s Gas Operator, Snam, had received more than 500 requests from potential biomethane producers to connect their upcoming biomethane production sites to the existing gas grid, indicating a market size for biogas upgrading equipment in excess of CDN $1.5bn ($1.1bn) over the next three to five years.

Kurt Sorschak, President, Xebec Adsorption Inc, commented, “We are very excited about our opportunities in Italy. According to the information available to us, we believe that Italy will emerge as the largest biogas upgrading market in the world over the next 3 to 5 years. We have an outstanding partner in Sapio who will work diligently on broadening their own bio-LNG projects and, along with our collaboration to commercialise Xebec’s biogas upgrading systems to third parties, we expect to gain significant market share overall. This strategic alliance with Sapio could allow us to become one of the market leaders for biogas upgrading in Italy.”