EU Funding Available to Commence VERBIO Biomethane Production

| Germany, Leipzig

VERBIO straw bales feeding into the biogas plantVereinigte BioEnergie AG (VERBIO), an independent producer of biomethane for fuel, is set to commence a project first approved in December 2012, that will increase the volume of biomethane (renewable natural gas) being produced for transportation and other uses in Germany.

In December 2012, the European Commission (EC) committed to provide funding of up to €22.3 million (USD 30 million) for VERBIO technology to produce biomethane entirely from straw. That funding has now been made available in the context of the European Union’s NER300 initiative to provide funding for demonstration projects for innovative technology with respect to renewable energy over a 5-year period; it underscores the EC’s intention to provide greater funding for the use of particularly sustainable types of biofuel in the future. It also acknowledges VERBIO’s pioneering achievements in producing biomethane entirely from straw.

The Fachagentur Nachwachsende Rohstoffe e.V. (German Agency for Renewable Resources – FNR) will provide administrative support for this EU project, which has been designated “DE BIOh Verbiostraw”, on behalf of the German Federal Ministry of Food and Agriculture.

The project has now officially been launched, following the execution of the grant agreement by Dr. Andreas Schütte, Managing Director of the FNR, and Dr. Oliver Lüdtke, CEO of VERBIO AG. It is intended that biomethane produced entirely from straw will be fed-in at the VERBIO plant in Schwedt in the second half of 2014.

Claus Sauter, CEO of VERBIO AG, emphasizes that, “This funding is a great honor for VERBIO and an incentive to increase the share of biomethane in the biofuel market. Biomethane is a real all-rounder amongst the renewable sources of energy; it is easy to store and can therefore be deployed at all times irrespective of its point of origin.”

Dr. Andreas Schütte, managing director of the FNR, points out that, “Theoretically, Germany could use up to 10 million tons of the straw produced each year for energy production without compromising soil fertility, and thus significantly and economically increase the proportion of energy sources represented by renewable energy. The processing of straw into biomethane provides an attractive solution in this regard and does not in any way compete with the production of foodstuffs or animal feed.”

Biomethane as a form of biofuel already plays a role in powering climate-friendly mobility in Germany, and this role is likely to increase. Funding from the European Commission plays an important part in continuing this development.

(Source: VERBIO AG)

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