TotalEnergies and HitecVision Join Forces to Accelerate Biogas Development in Poland through Polska Grupa Biogazowa Partnership
TotalEnergies, a global energy major, has signed a landmark Sale and Purchase Agreement (SPA) with Norwegian investment firm HitecVision to sell a 50% stake in Polska Grupa Biogazowa (PGB), Poland’s leading biogas company. The transaction, which values the company at an enterprise value of €190 million, marks a pivotal moment in the growth trajectory of both PGB and the broader biogas sector in Central and Eastern Europe.
This agreement not only reinforces TotalEnergies’ strategic approach of bringing partners into its renewable energy ventures to enhance project scale and financial returns, but also solidifies its commitment to driving the energy transition by scaling low-carbon energy sources globally. For HitecVision, a firm with a strong track record of energy investments and a growing emphasis on clean energy, this partnership represents a meaningful step in expanding its presence in the biogas and biomethane sector within the European Union.
Overview of Polska Grupa Biogazowa and Its Strategic Importance
Founded in 2007, Polska Grupa Biogazowa has established itself as Poland’s largest and most advanced biogas platform. The company was fully acquired by TotalEnergies in 2023 as part of its strategic effort to expand its renewables footprint in fast-growing European markets. With 20 operational units and a combined production capacity exceeding 450 GWh of equivalent biomethane, PGB has become a cornerstone of Poland’s renewable energy infrastructure.
PGB’s biogas plants currently utilize combined heat and power (CHP) systems to produce both electricity and heat from organic waste. This approach enables higher energy efficiency and contributes to the circular economy by turning agricultural and food waste into a valuable source of renewable energy. In addition to the existing plants, two new biogas facilities are currently under construction, reflecting the company’s aggressive growth strategy and readiness to meet increasing demand for sustainable energy in Poland.
Looking ahead, PGB is preparing for the next phase of its development by diversifying its operations to include biomethane production. The company has set an ambitious goal to reach 2 terawatt-hours (TWh) of biomethane production capacity by 2030. This expansion will involve both greenfield project development and mergers and acquisitions, making the partnership with HitecVision especially timely.
A Strategic Transaction with Broader Implications
The decision by TotalEnergies to divest a 50% stake in PGB aligns with its broader “farmdown” strategy, which consists of selling partial ownership in renewable assets to co-investors while continuing to manage operations and benefit from long-term returns. This business model allows TotalEnergies to recycle capital efficiently, invest in new renewable opportunities, and leverage the technical and financial strengths of strategic partners.
“We are delighted to welcome HitecVision as a partner for biogas production in Poland,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies. “This transaction will enable PGB to continue its growth in a country where biogas is rapidly developing and is in line with the farmdown business model applied to our renewable assets in order to maximize the profitability of our investments.”
The transaction is subject to customary governmental and regulatory approvals. Upon closing, HitecVision will become an equal shareholder in PGB and is expected to bring its capital, market experience, and strategic acumen to the joint venture.
HitecVision’s Role and Objectives
HitecVision, based in Norway, is a leading European investor focused on energy transition investments. Known for its strong track record in developing and scaling energy companies, HitecVision has made biogas and biomethane key pillars of its New Energy investment program. The firm is particularly focused on identifying scalable opportunities in regions with supportive regulatory frameworks and high decarbonization potential.
“Biogas and biomethane is a core focus for HitecVision’s New Energy Program, and Poland represents a unique market opportunity to pursue profitable growth while contributing to the decarbonization of Poland and the EU,” said Erlend Ellingsen, CEO and Managing Partner of HitecVision. “TotalEnergies has a well-established industrial footprint in Poland, and we as partners have complementary skillsets that we jointly will put to use for scaling PGB significantly over the next few years through greenfield projects as well as M&A.”
The Polish biogas sector is still in an early development phase compared to more mature markets in Western Europe, which makes it an attractive investment landscape. Poland has ample agricultural resources, increasing policy support for renewable gases, and a growing need to decarbonize its energy mix. These factors create fertile ground for companies like PGB to expand rapidly.
Poland’s Energy Transition and the Role of Biogas
Poland, traditionally reliant on coal for a large share of its electricity production, is undergoing a substantial energy transformation. As part of its commitment to the European Union’s climate and energy goals, the Polish government is gradually moving toward cleaner sources of power, including wind, solar, and biogas. Biogas in particular has a unique role to play because of its ability to provide dispatchable renewable energy and help manage agricultural waste sustainably.
The development of biogas and biomethane aligns with EU-level initiatives such as REPowerEU, which aims to reduce dependence on imported fossil fuels and increase domestic production of renewable gases. According to the European Biogas Association, the biomethane sector in Europe could grow to more than 35 bcm by 2030, and Poland is seen as one of the key contributors to this growth due to its strong agricultural base.
TotalEnergies and HitecVision’s investment in PGB is therefore not only a strategic business decision but also a response to increasing regulatory and market incentives promoting biogas and biomethane as critical energy transition solutions.
TotalEnergies’ Broader Biogas Strategy
Globally, TotalEnergies has identified biogas and biomethane as strategic pillars within its broader renewable energy and decarbonization strategy. The company has already invested in a number of biomethane projects across Europe and North America and aims to produce at least 2 TWh of biomethane per year by 2025, expanding to 10 TWh by 2030.
Through PGB and other partnerships, TotalEnergies is building a geographically diversified biomethane portfolio that can supply clean gas for heating, power generation, and transportation—particularly as a substitute for fossil-derived natural gas.
The partnership with HitecVision is expected to support this vision by accelerating project timelines, sharing investment risk, and bringing valuable local market knowledge to the table.
As energy markets in Europe continue to evolve in response to climate targets, policy changes, and supply chain disruptions, partnerships like the one between TotalEnergies and HitecVision are increasingly critical to scaling up new energy infrastructure. The development of Polska Grupa Biogazowa into a 2 TWh biomethane platform by 2030 will not only contribute significantly to Poland’s decarbonization goals but will also serve as a model for other emerging markets within the EU.
