Virsi secures €12mn loan from EEEF for biomethane plant in Latvia

Latvia-based energy resource trader and operator of convenient shopping stores Virsi has signed a €12mn ($13.02mn) loan agreement with the European Energy Efficiency Fund (EEEF) for the development of a biomethane production plant in Latvia, the company announced on July 22. The total cost of the project is estimated at more than €15mn.

Scheduled to start operations in the second half of 2025, the biomethane plant will utilise closed anaerobic fermentation technology to process agricultural manure into biomethane. The primary construction partner for this project is a Germany-based company that has executed over 300 biogas/biomethane projects, Virsi said. 

"The construction of the biomethane plant is the next strategic step in the company's development to further strengthen and diversify the company's operating model. We believe that biomethane will play a critical role in the future in making the transport sector more sustainable," said Janis Viba, chairman of the board of Virši.

Biomethane is an essential part of the European Union's broader strategy to achieve energy independence and transition to a sustainable energy future. The biomethane produced at the Virsi plant will be directly fed into the local gas transmission network, with a capacity designed to reach 60 GWh/year. This capacity is expected to replace up to 5.6mn m³/year of natural gas. The plant will source more than 200,000 tonnes/year of raw material from over 15 local farms.

Founded on the initiative of the European Commission, the EEEF provides financial and technical support to projects that contribute to the achievement of the EU's climate and energy goals.