Swiss-based VARO Energy acquires 80% stake in Dutch biogas manufacturer Bio Energy Coevorden

Zug, Switzerland-based VARO Energy (VARO), a fuel and energy company, announced on Thursday, January 12, that it has acquired 80 per cent stake in Bio Energy Coevorden (BEC), a Dutch biogas manufacturer.

VARO acquired shares from the existing shareholders STAK Grisbe and Van Drie Group. These firms will continue to own 15 per cent and 5 per cent of the business, respectively. 

The transaction is expected to be completed in February. The Swiss company didn’t disclose the exact figures at which it bought its stake in the Dutch group.

Post the acquisition, BEC will continue to run on an independent basis. 

The reason

The acquisition will help VARO double its capacity from 300 to 650 GWh by 2026, making it one of Europe’s three largest biogas facilities.

Consequently, it meets 65 per cent of VARO’s 2026 target of 1 TWh of biomethane / bio-LNG under its ONE VARO Transformation strategy launched in July 2022. 

The Swiss company also says it will substantially contribute 20-25 per cent of VARO’s Engine 2 (Renewable Energies) EBITDA by 2026.

Dev Sanyal, CEO of VARO, says, “Last year, we set out our ambitious ONE VARO Transformation strategy to be the partner of choice for customers in the energy transition and to be net zero by 2040. Today’s announcement is a significant step towards accelerating our strategy by building a leading position in biogas in Europe.”

The acquisition also places the Swiss company in a great position to meet growth in European demand for biomethane (expected to increase 3X by 2030 across Europe) and bio-LNG (expected to grow by 10X in Germany by 2030). 

“The combination of this platform and VARO’s integrated business model will contribute to our strategic growth and be highly value accretive to VARO. Large scale biogas facilities have an important role in accelerating Europe’s energy transition – offering an alternative to conventional fuels at scale with emissions 90% lower than natural gas and allowing our refineries to replace their natural gas consumption with biomethane products with a lower carbon intensity. In addition, growth in biogas will further support Europe’s energy security by diversifying supply,” says Sanyal. 

VARO Energy: What you need to know

Founded in 2012, VARO Energy is a European energy company that manufactures, stores, and distributes conventional fuels, sustainable energies, and services.

Last year, the company launched a strategy built around two engines. 

Engine 1 is focused on VARO’s Conventional Energies business, which includes oil and gas manufacturing, storage, trading, marketing, and distribution.

Engine 2 is about Sustainable Energies business such as biofuels, biomethane, bio-LNG, hydrogen, e-mobility, and carbon removals. 

The Switzerland company plans to invest around $3.5B over the 2022-26 period, with two-thirds committed to Engine 2. 

Christian Cuenot, VARO Vice President of Biogas, adds, “This transaction brings VARO closer to realising its target of 1 TWh/y of biogas production by 2026. It creates the largest biogas manufacturing facility in Northern Europe, located at the heart of one of the world’s most concentrated industrial centres, offering easy access to high-demand growth. Abundant feedstock from agricultural waste in the region also provides a resilient and sustainable supply to the facility. I am looking forward to working with our new partners to deliver on the expansion of the current platform plant and continue to grow VARO’s biogas business.”