Varo Energy says its acquisition of Renewable Energy Services BV (RES) will strengthen its position in Europe by integrating its feedstock aggregation and manufacturing alongside trading and customer offers.
The transaction, which is expected to be completed in Q3 2023, follows Varo’s acquisition of an 80% shareholding in Bio Energy Coeverden (BEC), one of the largest biogas facilities in Europe, in January.
Varo noted that European demand for biogas is expected to increase threefold by 2030. The acquisition of RES will add a trading capacity of 1 TWh.
‘Our customers want to decarbonise and to do so they need a partner able to provide them with reliable low carbon fuels with credible certification across the markets they operate in,’ said Dev Sanyal, CEO of VARO. ‘RES’ established trading capabilities and customer value proposition, as well as their entrepreneurial culture, are well suited to supporting VARO’s growth in biogas and build on our leading sourcing and operational capabilities.’
As previously reported, last year, Varo revealed a new $3.5 billion investment strategy comprising two pathways, the second of which consists of ‘five growth pillars targeting the most attractive low carbon growth markets in Europe’: namely, biofuels; biomethane and BioLNG; hydrogen; e-mobility; and carbon removals.