Steer advises on financing deal for Sicilian biomethane plant, helping Italy’s green transition

Steer has advised Società Agricola Assoro Biometano S.r.l. in raising project finance for the upgrade of the existing biomethane plant located in Assoro (Sicily). 

Banco BPM provided €6.7 million of funding aimed at financing a liquefier that will increase plant capacity. 

This is the second round of financing from the lender, following an initial deal in 2022, bringing the total loan from Banco BPM to just over €12 million. 

Società Agricola Assoro Biometano S.r.l. is part of the Femo Gas Group, that is developing a series of high-profile initiatives to support the energy transition and the circular economy throughout Italy. 

Biomethane is widely recognised as a useful transition fuel and the European Commission has called for an upscale in production by 2030 to both meet emission targets and as a response to Russia’s invasion of Ukraine. 

What did Steer do? 

Steer worked in conjunction with the management of operating company and Femo Gas, the project finance team of Banco BPM, and legal advisor PedersoliGattai, to bring the deal successfully over the line. 

Mr. Edoardo Bonaccorsi, CEO of Assoro Biometano, said: “The operation was successful thanks to the excellent collaboration between the bank and our advisors, which I thank alongside our team on the field in Assoro, which has achieved extraordinary production results in the last four years.” 

Steer has been working with Femo Gas since 2020 and has advised on over €60 million worth of financing and refinancing projects within the Group for the construction or upgrade of biomethane plants, including the financing of €21.4m for the construction of a biomethane plant near Vicenza in 2023 and assistance for a financing of €13m for the construction of a biomethane plant near Verona in 2020. 

“Private investment into biomethane is crucial to scaling this industry and its outputs across Italy, in addition to increasing network connectivity,” says Raffael Massa, Head of Financial Advisory in Steer Italy who led the team. 

“Key to unlocking its true potential is the introduction of a regulatory framework and incentive schemes, which would stimulate greater investment into this precious and renewable resource.” 

“Steer has developed an unparalleled understanding of how to attract public and private financing into biomethane in the region and we’re delighted to have supported our client with the further expansion of its operations.”