Taking the next step towards achieving its strategic goals, the energy commodities trader and convenience store network AS "VIRŠI-A" (hereinafter - "Virši") in cooperation with project partners signed an agreement with the European Energy Efficiency Fund (EEEF) to secure funding for the development of a biomethane production plant in Latvia. As part of this initiative, the EEEF will provide a long-term loan to support the plant's development, which will enhance Latvia's renewable energy capacity. The total cost of the project is estimated at more than 15 million euros, of which EEEF funding is 12 million euros.
The new biomethane plant, scheduled to commence operations in the second half of 2025, will utilize closed anaerobic digestion technology, converting agricultural manure into biomethane. The main construction partner, a Germany-based company with over 20 years of experience in successfully implementing more than 300 biogas/biomethane projects, has been chosen.
"Since the Company's admission to trading on the Nasdaq Baltic First North Market, Virši has taken significant steps towards creating a more diversified and sustainable business model for the Company and its shareholders. These steps include establishing an electricity trading segment, increasing the number of compressed natural gas filling stations and creating a powerful electric charging network across Latvia.
The construction of the biomethane plant is the next strategic step in the Company's development to further strengthen and diversify its business model. We believe that biomethane will play a critical role in making the transport sector more sustainable in the future, ensuring strong demand and profitability for this product in the coming years," says Janis Viba, Chairman of the Board at Virši.
Biomethane is an essential part of the European Union's broader strategy to achieve energy independence and transition to a sustainable energy future. This and similar projects across Europe help prevent methane emissions from the agricultural sector and reduce dependence on imported natural gas. The biomethane produced at the new plant will be directly fed into the local gas transmission network. The plant's designed nominal capacity is 60 GW, and it is expected to replace up to 5.6 million cubic metres of natural gas annually.
"Renewable biomethane production from waste not only promotes increase of local green energy and independence from fossil fuels, but also enhances waste management at a national level. Moreover, becoming a biomethane producer can significantly improve a company's image. The role of biomethane has grown substantially in both the heating and transport sectors. It is gratifying to see new companies entering this sector, as their growth drives progress in various other fields-innovation, job creation, agricultural sector development and emission reduction," says Kristine Vegere, Member of the Board of the Latvian Biogas Association.
The raw material for the plant, more than 200 thousand tonnes per year, will be supplied by more than 15 local farms. The plant will not only produce a fully renewable energy source and provide additional income streams for farmers but also ensure a sustainable waste management method by recovering methane from manure, which would otherwise be emitted into the atmosphere from open manure storage sites.
About European Energy Efficiency Fund (EEEF)
The European Energy Efficiency Fund (EEEF) is dedicated to supporting energy efficiency and renewable energy projects across Europe. Established by the European Commission, EEEF provides financial and technical assistance to projects that contribute to the EU's climate and energy goals.
The shares of AS VIRŠI-A are admitted to trading on Nasdaq Baltic First North Market.
The certified adviser for AS VIRŠI-A is the Law Office Eversheds Sutherland Bitans.
Virši is a rapidly growing local energy commodities trader and convenience store network with 29 years of experience. Currently, Virši has 80 sales points, 77 of which are service stations, and employs more than 800 people across Latvia. Since 11 November 2021, the shares of AS VIRŠI-A have been listed on the Nasdaq Riga First North Alternative Market.
Contact information:
AS VIRŠI-A
Undine Priekule
E-mail: undine.priekule@virsi.lv
Telephone: +371 26141219
Certified adviser:
ZAB Eversheds Sutherland Bitans SIA
Justine Ignatavicute
E-mail: justine.ignatavicute@eversheds-sutherland.lv
Telephone: +371 28665066
