Investment strengthens Europe’s renewable gas infrastructure and accelerates growth in biomethane production
VisionEdgeOne (“VE1”) has announced the completion of its strategic investment in RE2Sources, one of Italy’s foremost biomethane platforms, marking a significant milestone in its broader push to support the transition toward sustainable infrastructure solutions across Europe. The investment was made on behalf of investors within the VisionEdgeOne Infrastructure Partnership platform, further strengthening VE1’s role in advancing renewable energy assets that contribute to both decarbonization and long-term energy resilience.
Through this transaction, VE1 becomes a joint-controlling co-investor in RE2Sources, partnering with Arjun Infrastructure Partners (“Arjun”), a respected European mid-market infrastructure manager with a strong track record in managing essential energy and environmental assets. The joint ownership structure underscores a shared commitment to expanding renewable gas production and supporting Italy’s circular economy ambitions.
RE2Sources currently stands as a prominent leader in Italy’s rapidly growing biomethane sector. The company owns and operates six advanced anaerobic digestion (AD) plants capable of processing a combined total of 220,000 tonnes of municipal waste per year. Using state-of-the-art AD technology, these facilities convert organic waste streams into high-quality biomethane, producing around 200 GWh annually. This renewable gas is injected directly into Italy’s national gas grid, where it displaces fossil-derived natural gas and helps decarbonize the country’s energy supply.
In addition to renewable gas production, RE2Sources’ facilities also generate sustainable byproducts, including nutrient-rich fertilizer and biogenic CO₂, both of which offer environmental and commercial value. The fertilizer supports agricultural sustainability, while the biogenic CO₂ can be used in food production, industrial applications, and other markets seeking low-carbon alternatives.
The investment comes at a time when the biomethane sector in the European Union is experiencing robust momentum. Multiple factors are driving this growth: favorable regulatory frameworks, strong policy support for renewable gases, and an urgent need to enhance energy security following years of volatility in global energy markets. Biomethane is increasingly seen as a vital component of the EU’s broader decarbonization and independence strategy, especially as countries look for scalable solutions that reduce their reliance on imported fossil fuels while managing waste more efficiently.
VE1 considers the biomethane market a critical area within its investment mandate, with the sector aligning closely to its objective of supporting mid-market businesses that are poised to shape the next generation of sustainable infrastructure. The company’s strategy focuses on platform-style investments that combine strong underlying fundamentals with opportunities for meaningful growth and environmental impact.
Boe Pahari, Chairman of VisionEdgeOne, emphasized the importance of this transaction within VE1’s wider sustainability strategy. He noted, “We welcome the completion of this investment in RE2Sources, which we believe stands out as a highly attractive opportunity in the biomethane space. It supports the energy transition, strengthens Europe’s energy security, and provides an efficient solution for waste—three areas that are essential for modern infrastructure planning.”
Pahari further highlighted that RE2Sources aligns closely with VE1’s vision of backing infrastructure assets that not only deliver reliable and stable operational performance but also demonstrate the potential for expansion. He added, “It is highly representative of VE1’s investment strategy as we are investing in assets with strong infrastructure characteristics and growth potential, providing sustainable solutions to the changes and challenges of modern living.”
Arjun Infrastructure Partners echoed this optimism about the collaboration and the future trajectory of RE2Sources. Surinder Toor, Managing Partner at Arjun, commented, “We welcome VE1 as our co-shareholders in this asset, which is positioned for success in the coming years. We look forward to continuing to grow RE2Sources, a true circular economy platform that addresses key needs of its domestic markets in both energy supply and waste processing.”
Toor’s remarks underscore the strategic role that RE2Sources plays within Italy’s circular economy ecosystem. The platform not only helps reduce landfill waste by redirecting organic material to energy production but also feeds clean, renewable energy back into the grid. This dual benefit model positions the company at the intersection of Europe’s waste management reforms and the continent’s accelerating push toward renewable gases.
The transaction also involved a comprehensive advisory process. VE1 was supported by Sidley Austin and Chiomenti, which provided legal counsel, as well as FTI Consulting for financial and tax advisory services, and Aon for insurance advisory. Arjun Infrastructure Partners received legal advice from Ashurst and tax advisory support from Alvarez & Marsal. The involvement of these leading advisory firms reflects the complexity and importance of the deal within the broader renewable infrastructure landscape.
Looking ahead, the collaboration between VE1 and Arjun is expected to drive further growth for RE2Sources. Potential areas of expansion may include increasing processing capacity at existing facilities, acquiring additional AD plants, or exploring technological enhancements that boost biomethane yields and byproduct utilization. As demand for renewable gas continues to rise across Europe, platforms like RE2Sources are well-positioned to scale alongside policy support and market needs.
This investment not only reinforces VE1’s commitment to the biomethane sector but also strengthens Italy’s ability to meet its renewable energy and waste reduction targets. By supporting an asset that generates clean energy, creates valuable agricultural inputs, and enhances energy independence, VE1 and its investors are playing a pivotal role in steering Europe toward a more sustainable, resilient, and circular energy system.
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