Traders of Environmental Progress
STX Group is a global environmental commodities trader offering physical and financial solutions across compliance and voluntary systems for energy, fuels, gas and carbon markets.
Press Releases
STX Group’s unique financing deal with BioValue for Dutch biomethane plant
- STX Group will be the lead financier in a pioneering financing solution in the biomethane market, in collaboration with a Dutch environmental investment firm Nationaal Groenfonds
- BioValue to secure capital without fixed offtake prices and retains full ownership of the plant while benefiting from STX Group’s market access for biomethane and financial support
AMSTERDAM (February 15, 2024) — STX Group, a leading environmental commodity trader, today announces the financing partnership with BioValue, a major Dutch biomethane producer, for the construction and development of the Groengas Cothen biomethane plant. The new plant adds at least 80GWh of renewable natural gas capacity per year. This strategic move is aligned with STX Group’s mission to promote the energy transition and underscores the redefinition of market dynamics aimed at boosting project development in the renewable energy space.
The financing by STX Group ensures BioValue access to key capital but also provides flexibility, avoiding potential constraints from fixed offtake prices. Collaborating with Nationaal Groenfonds as the junior financier, STX Group goes beyond traditional offtake agreements: unlike traditional banking institutions, this financing model provides BioValue with exposure to the developing biomethane market, contributing to their strategic goals and long-term success.
“This agreement marks a significant milestone in the biomethane sector and showcases our ability to pioneer novel financing solutions,” says Sead Keric, Managing Partner of Renewable Gas at STX Group. “By combining BioValue’s operational expertise with our climate finance capabilities, we empower biomethane producers to focus on what they do best while addressing development challenges. In light of the developing nature of the biomethane market and the illiquid, less transparent markets, there is a pressing need for alternative financing solutions.”
“As a major biomethane actor running multiple plants in the Netherlands, we are determined to realize much-needed new capacity in line with Dutch biomethane targets and European Fit for 55 goals,” said Ids Schaap, Managing Director and Founder of BioValue. “Our commitment to reducing CO2 emissions and minimizing environmental impact aligns seamlessly with STX Group’s mission to drive sustainable practices in the renewable energy sector.”
The latest EBA report revealed European biomethane production rose by 20% in 2022 over the previous year. However, the EU dependency on natural gas imports went from 83% to 97%. Amidst the global push for sustainability, momentum is building in the biomethane sector, marked by surging industrial demand and capacity despite project development challenges.
The European Commission established a goal aiming to achieve 35 bcm of sustainable biomethane production by 2030, as an integral part of REPowerEU. “While we welcome the recent European Parliament’s recognition of biomethane contribution to the decarbonization of the transportation sector, establishing a fair and comprehensive legislative framework for accounting the role of renewable fuels would bring additional benefits to the market,” Keric commented.
