AGR Biogas, a company based in Andalusia specializing in the promotion, construction, and management of industrial biogas plants, has announced the commencement of construction for the first biogas plant with biomethane injection in Andalusia.
The project entails an estimated investment of €25 million, with nearly €20 million secured through Project Finance provided by ING Bank. It represents the inaugural biomethane project financed under this modality in Spain, marking a significant milestone in the country’s energy landscape and aligning with AGR’s strategic plan unveiled in July 2023.
Situated in the municipality of La Calahorra, Granada, the plant will boast a total treatment capacity of approximately 100,000 tons per year, predominantly sourced from livestock and olive residues generated in the vicinity. This capacity is poised to generate 58 GWh per year of energy in biomethane, contributing to a reduction of 23,000 tons of CO2 annually, equivalent to the emissions from 6,500 cars circulating yearly in Spain.
Furthermore, the plant will yield digestate serving as fertilizer, enriching local agriculture and fostering sustainable farming practices while efficiently closing the nutrient cycle.
Beyond environmental and economic benefits, the project aims to support rural development by diversifying the economy and generating direct and indirect employment opportunities, according to the company.
The plant will engage with 44 farming families and several agro-food companies in the region. In addition to this collaboration, over 50 individuals will be directly employed during its construction phase.
David Pinero, General Director of AGR Biogas, remarked, “With the commencement of the La Calahorra project, we tangibly initiate our strategic plan, which encompasses a portfolio of over 30 projects in Spain and Portugal, with a primary focus on Andalusia. In the forthcoming months, we anticipate commencing construction on at least two additional plants in Andalusia.”