Member press release – SEBIGAS ENTERS THE US MARKET
Sebigas has signed a Memorandum of Understanding and related supply contracts for biogas plants development for US farmers. The project pipeline includes 20 new plants in the incoming years. Sebigas US branch is under study stage.
Olgiate Olona, 7th April 2021 – Sebigas, with a portfolio of 84 biogas plants worldwide, is pleased to confirm its pathway to the internationalization process by entering the US market. As announced during Industrial Plan presentation at the time of TICA Group acquisition, the new projects are the goal achieving announced during the presentation of Sales Strategic Plan.
RNG growth in Pennsylvania, Georgia and New York State could be developed interacting with an important local partners’ network. The Italian company Sebigas will involve its know-how and track record of experiences in the management and enhancement of animal manure, and in consulting for farming circular management. TLG Energy management LLC, American Farm Resources LLC and Bioenergy Partners LLC projects are now under development stage.
An accurate Business model customization has been structured to build an “Italian – American” product line, meeting both the needs of local partners and potential customers. This product line will support the implementation of circularity in farms’ economy and will exploit RNG (biomethane) potentials in American FIT legislation from renewable sources.
“We are proceeding with enthusiasm and commitment Sebigas growth, succeeding American biogas market challenges with optimism” says Roberto Salmaso, Sebigas General Manager. “The operative phase of our overseas projects pipeline is taking form, and we are proud to have the opportunity to export our technological capacity and turn it into an added value for a country with a huge energy potential in the agricultural-zootechnical sector”.
Sebigas’ partner commitment towards circular economy, renewable energies, biogas and biomethane, is strongly connected to Sebigas know-how. The experience of the American partner in the field of farming, allows the creation of a network with local stakeholders, with the aim to design plants that can provide quality liquid digestate and bedding, injecting into the grid the highest RNG output.
“The Sebigas team have supported us with competence and professionalism as a strong partner along project development phase” says Luca Sirugo, Business Partner US projects promotion. “We are confident that the past 5 years spent in developing RNG’s most important project pipeline in the United States will turn into a successful long-term collaboration with Sebigas”.
This business model supports farms profitability, supplying collection and management of manure, by returning liquid digestate suitable for soil spreading and ideal for soil fertilization. Thanks to the agreement stipulated with farmers, it will be possible to return solid digestate as an organic litter purified of pathogens. As a result, farmers will save money in bedding raw material purchase and will obtain a more performing AD from the reduction of aggregates.
The RNG production will also allow significant return of investments in a short period of time. Other elements that define the success model are shareholders commitment in business goals achievement, supported by Central Government and Federal feed-in policies. Based on a solid Business Plan, the biogas facility lets farmers have more incomes, contributing to the decarbonization process, which is now central in the USA energy scenario.
With the detailed engineering and site survey phases already in execution, the three plants under construction will join the existing 133 RNG production plants at the end of 2020 in the USA. This step defines a strategic development plan that will see the intensification of activities with local partners and TICA Group branches. With 20 new plants to be launched over the three in operative phase, Sebigas’ Business Development will support the implementation of a relevant pipeline over the years.
The development plan takes shape from a strong financial structure, that can withstand long incubation periods and market fluctuations. To do that, Sebigas team is growing as per expectations, introjecting key competences to let Sebigas manage new market opportunities efficiently and effectively. A double-digit rate growth over the next years is on the target.
A great prospect for Sebigas internationalization development, which is following the growth of the American biomethane agricultural market, that had doubled the 36 agricultural plants registered at the end of 2019.
The USA government is pushing hard on environmental and green energy policies with the aim to reduce GHG effect, climate-altering gases, and the harmful effect of spreading manure.
The States with the largest biomethane production are Wisconsin, Texas, Pennsylvania, Ohio and California; Georgia and New York are coming. A great increase in the production of RNG in the national energy balance goals requires dedicated structures and policies to be implemented. This is the scenario in which Sebigas wants to have a key role for the development of its high-performances plants. Further positive implications can be found in the implementation of “Green Act & Infrastructure Bill” by Biden administration, which is committed to invest 500 billion dollars into sustainable mobility in the coming years.