Edison: long-term BPA for the offtake of 3 million cubic meters of biomethane

Thanks to the agreement, the Milan-based energy Group will be able to offer its energy customers gas accompanied by guarantees of origin.

 

Milan, November 4, 2024 - Edison announces that it has signed a long-term contract (BPA, biomethane purchase agreement), for the offtaking of biomethane produced from agricultural biomasses with Kanadevia Inova. Under the agreement, which has a term of 15 years, Kanadevia Inova will complete by the first half of 2025 the construction of a biomethane plant fuelled by agricultural by-products in the province of Cuneo, the production of which will be fully offtaken by Edison for an annual volume of about 3 million cubic meters.
With this transaction, and by generating energy from renewable resources, Kanadevia Inova enters the Italian biomethane sector while Edison further diversifies its portfolio with increasing shares of green gas, offering the possibility to accompany its customers on their decarbonization path.

«Thanks to this agreement, Edison strengthens its position in the Italian and European green gas market, offering customers, particularly energy-intensive ones, a competitive solution that can reduce their exposure to the purchase of ETS securities. At the same time, it confirms its commitment to accompany its customers on the path to decarbonization through increasing shares of green gas, such as precisely biomethane and bioLNG», says Fabio Dubini EVP Gas & Power Portfolio Management & Optimization Edison.
Keith Carr, Executive Vice President Asset Management at Kanadevia Inova comments: «This collaboration with industry frontrunner Edison is the final piece in bringing our vision of a true resource circularity, decarbonization and sustainable energy supply to life. With the launch of our first wet anaerobic digestion plant under the DFBOO (design, finance, build, own, operate) model in Italy, we are able to close the cycle – transforming agricultural waste into valuable biomethane to support regional decarbonization and supply secure and sustainable energy. This proud milestone embodies Kanadevia Inova’s mission, 'For a Future Free of Wasted Waste,' and sets a bright new standard for potential projects ahead».

Biomethane is a green gas obtained from the purification of biogas, produced by the anaerobic digestion of organic material such as agricultural residues or municipal waste. It is one of the pillars of the European Union's energy transition, whose REPowerEU plan is to increase production tenfold to 35 billion cubic meters per year, or 342 TWh. Its environmental benefits include reducing greenhouse gas emissions, sustainable waste management and supporting the circular economy. Like natural gas, it can be used for heating, electricity generation, as vehicle fuel or be fed into the grid.

Edison stands out in the Italian energy scene for its commitment to the integrated management of this energy carrier, from its production to its sale to the market. The Group is the main player in biomethane in Italy: it currently covers one-third of the national market and in 2023 purchased and managed more than 100 million cubic meters of this green gas. Edison, since the construction of the first plants in the country in 2018, has
been helping producers sell biomethane on long-term horizons, withdrawing it from production sites and reselling it in the transportation sector.