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29 min ago 3 min read
Swiss renewable energy company Axpo has injected the first gas produced by its biomethane plant in Grottole, southern Italy, into the country’s national grid.
The plant, which was acquired by Axpo in 2024, is expected to ramp up to full capacity within six months when it will produce 45 GWh of renewable energy per year.
According to the company, this is equivalent to the average gas consumption of around 3,200 Italian homes and will help to avoid 9,000 tonnes of direct carbon dioxide emissions annually.
The facility’s long-term gas offtake contract has been signed with Italian paper mill, Cartiere del Garda.
“This injection of first gas represents more than a technical achievement,” said Véronique Abrate, Head of Biogas International at Axpo. “We now start producing renewable gas at scale in Italy, and this is just the beginning of our expansion.”
“Biomethane is central to Europe’s energy transition, and Grottole is central to our growth strategy,” said Andy Heiz, Head of Generation & Distribution and Deputy CEO. “This is infrastructure that works, feeds the grid, and powers communities.”
The project comes as Europe’s biomethane sector continues to gather momentum. According to the European Biogas Association (EBA), annual biomethane production capacity for the first time this year.
This marks a 17% increase compared with 2025 as investment commitments reached €36bn and nearly 2,000 biomethane plants came into operation across the continent.
While growth remains concentrated in a handful of countries, Italy has established itself as one of Europe’s leading biomethane markets. The country has continued its build-out of larger-than-average plants and has continued investment supported by government incentives aimed at reducing reliance on imported natural gas and meeting decarbonisation targets.
The country has seen a wave of financing announcements in recent months. In April, Bionext Infrastructure to convert 15 existing biogas plants to biomethane, while Bio Hold obtained a €100m loan to construct six new plants.
Last year, Italy’s environment ministry also for biomethane development, alongside capital grants covering up to 40% of project costs and 15-year tariff guarantees through Gestore Servizi Energetici (GSE).
Axpo said the Grottole facility uses agricultural by-products sourced from regional farms to produce low-carbon gas and fertiliser, supporting both Europe’s decarbonisation objectives and the circular economy.
