Financing for biogas-to-methanol project in Brazil

Client

mele is a medium-sized biogas company group that is developing the project in co-operation with Enertrag.

Background

The Toledo region in the state of Parana has intensive livestock farming with more than 4 million pigs, for example, and the resulting manure problems.

In close cooperation with the livestock farmers' cooperatives, mele is developing a park of 35 biogas plants, each with a capacity of 2.5 MW. At the same time, Enertrag is developing a wind and solar park. The aim is to produce around 350,000 tonnes of green methanol per year on this basis. Alternatively, sustainable aviation fuels (SAF) or e-synfuels can be produced.

The project development is supported by GIZ as part of the BMWK's H2Uppp programme.

Objectives

DFIC was commissioned to support mele in structuring the financing and acquiring funding and subsidies. Project development activities are also to be supported in preparation for discussions with banks.

Results

The main results of the DIFC activities include:

• Structuring of the project in SPVs
• Identification of a possible financing structure
• Identification and partly contacting of:
  • International financing institutions
  • Private equity investors such as international hydrogen funds
• EDevelopment of checklists for discussions with the bank
• Identification of funding and subsidies for further project development
• Control of financial modelling