2024-07-22 22:30:32
“Virši-A” and the project partners have concluded an agreement with the European Energy Efficiency Fund on attracting funding. During the initiative, the fund will provide a long-term loan to support the development of the plant, which will contribute to Latvia’s renewable energy capacity, the report states.
The total cost of the project is estimated at more than 15 million euros, including the funding of the fund, which will amount to 12 million euros. It is planned that the new biomethane plant will start operating in the second half of 2025, and it will use closed anaerobic fermentation technology, processing agricultural manure into biomethane.
“Virši-A” states that the main construction partner is a German-based company that has more than 20 years of experience in successfully implementing more than 300 biogas/biomethane projects.
The announcement also mentions that the raw material for the plant – more than 200,000 tons per year – will be supplied from more than 15 local farms.
The company explains that biomethane is an essential part of the European Union’s (EU) broader strategy to achieve energy independence and the transition to a sustainable energy future. This and similar projects across Europe contribute to the prevention of methane emissions from the agricultural sector and at the same time reduce dependence on imported natural gas. The biomethane produced in the new plant will be directly fed into the local gas transmission network. The plant will have a design capacity of 60 gigawatts (GW) and is expected to replace up to 5.6 million cubic meters of natural gas per year.
“Virši-A” board chairman Jānis Vība states that the construction of the biomethane plant is the next strategic step in the company’s development in order to strengthen and diversify the company’s operating model. “We believe that biomethane will play a critical role in making the transportation industry more sustainable in the future, which in turn will ensure strong demand and profitability for this product in the coming years,” he says.
Board member of the Latvian Biogas Association Kristīne Veģere adds that the production of renewable biomethane from waste not only contributes to the growth of local green energy production and independence from the use of fossil fuels, but also improves waste management at the national level.
“In addition, becoming a biomethane producer also significantly affects the development of the company. The role of biomethane has grown significantly in both the heating and transport sectors. It is a pleasure to see new companies entering this sector, as their growth also promotes progress in various other directions – innovation, job creation , in the development of the agricultural sector and the reduction of emissions,” says Veħere.
The European Energy Efficiency Foundation is dedicated to energy efficiency and renewable energy projects across Europe. Established on the initiative of the European Commission, the fund provides financial and technical support to projects that contribute to the achievement of the EU’s climate and energy goals.
It has already been reported that the audited turnover of the “Virši-A” concern last year was 343.732 million euros, which is 8.4% less than in 2022, but the profit of the concern decreased more than twice and was 5.099 million euros.
The “Virši-A” concern includes the parent company “Virši-A”, SIA “Virši logistika”, SIA “Virši Renergy”, “Virši Lietuva” and AS “CRYO Baltic”.
According to the information published by the company, the largest shareholders of the company are Jānis Riekstiņš (21.03%), Jānis Rušmanis (20.86%), Ruta Plūme (20.83%), Andris Priedītis (12.82%) and Ilgvars Zuzulis (12 .8%). Since November 11, 2021, the company’s shares have been included in the “First North” alternative market of “Nasdaq Riga”.
2024-07-22 22:30:32