Paris: TotalEnergies has announced the sale of a 50% stake in its Polish biogas subsidiary, Polska Grupa Biogazowa (PGB), to Norwegian investment firm HitecVision. The agreement values the company at €190 million ($213.6 million), reports Reuters.
In a statement on Wednesday, Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said the deal would support PGB’s continued expansion in Poland, where the biogas sector is growing quickly.
HitecVision’s CEO Erlend Ellingsen noted that both companies bring complementary strengths to the table and plan to significantly scale up PGB’s operations in the coming years. The strategy includes both greenfield projects and acquisitions.
Under European Union energy policies, biogas is classified as a renewable energy source, on par with wind and solar power, and its use is encouraged through mandatory quotas, especially in transportation.
TotalEnergies has been steadily increasing its focus on biogas. Last year, it sold a 10% share in its BioNorrois biogas unit to sugar producer Crystal Union. The company has set an ambitious goal to produce 100 terawatt-hours (TWh) of biogas annually by 2030, a major jump from the 1.2 TWh it currently produces.
Biogas, made from organic waste like animal manure and crop residues, is chemically similar to natural gas.
The sale to HitecVision is still subject to regulatory and government approvals.
