In a significant move to accelerate the growth of the biogas sector in Poland, TotalEnergies and Norwegian investment firm HitecVision have announced a partnership focused on Polska Grupa Biogazowa (PGB). TotalEnergies has signed a Sale and Purchase Agreement (SPA) to sell a 50% stake in PGB to HitecVision for an enterprise value of €190 million.

PGB, recognized as the leading biogas producer in Poland, currently operates 20 units with a total production capacity exceeding 450 GWh of equivalent biomethane. The company, founded in 2007 and fully acquired by TotalEnergies in 2023, primarily focuses on generating electricity and heat through combined heat and power (CHP) from its biogas plants. Notably, PGB also has two additional plants currently under construction in Poland, signaling its ongoing expansion efforts.

Biogas is composed of methane (CH4) and carbon dioxide (CO2), with smaller amounts of other gases like hydrogen, nitrogen, and hydrogen sulfide.

The newly formed partnership has ambitious growth targets for PGB. The company aims to significantly increase its production capacity to 2 TWh of equivalent biomethane by 2030, demonstrating a strong commitment to the burgeoning biomethane market. This strategic shift includes diversifying its operations to focus more on biomethane production.

Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, expressed enthusiasm about the collaboration, stating, "We are delighted to welcome HitecVision as a partner for biogas production in Poland. This transaction will enable PGB to continue its growth in a country where biogas is rapidly developing and is in line with the farmdown business model applied to our renewable assets in order to maximize the profitability of our investments."

Echoing this sentiment, Erlend Ellingsen, CEO and Managing Partner of HitecVision, highlighted the strategic importance of biogas and biomethane for their New Energy Program. "Biogas and biomethane is a core focus for HitecVision’s New Energy Program, and Poland represents a unique market opportunity to pursue profitable growth while contributing to the decarbonization of Poland and the EU. TotalEnergies has a well-established industrial footprint in Poland, and we as partners have complementary skillsets that we jointly will put to use for scaling PGB significantly over the next few years through greenfield projects as well as M&A,” Ellingsen commented.

This partnership leverages the strengths of both companies. TotalEnergies brings its extensive experience in the energy sector and its established presence in Poland, while HitecVision offers its specialized investment expertise in the energy transition and a strong focus on Renewable Energy development. The collaboration is expected to fuel PGB's expansion through both the development of new greenfield projects and strategic mergers and acquisitions within the Polish biogas market.