Energy resources trader Virši-A, operating under the Virši brand, is set to begin biomethane production at a new facility in Latvia’s Vidzeme region by the second half of 2025. Announced on August 16 by Virši-A Chairman of the Board Janis Viba, the project is being developed in partnership with other stakeholders, with a total investment of €15 million, of which €12 million will be funded by the European Energy Efficiency Fund.
Viba explained that the project is currently in the final stages of design and obtaining building permits, with construction groundwork scheduled to begin this year. The installation of technology and equipment is planned for 2024, aiming for the plant to start biomethane production by late 2025.
The project is driven by three key factors:
- Financial Returns: The biomethane produced at the plant will primarily be exported to European markets, where demand is high across various sectors, including transport. Viba emphasized that using biomethane as a “green” energy source is increasingly important for companies seeking to demonstrate their commitment to sustainability.
- Strategic Location: Vidzeme’s proximity to large farms that can supply the necessary raw materials, such as manure, for biogas production is a significant advantage. The plant will initially produce biogas, which will then be refined into biomethane. Additionally, the site is conveniently located near a gas pipeline, facilitating the distribution of the biomethane produced.
- Business Diversification: The biomethane plant represents a strategic step in Virši’s long-term business model diversification. The company and its partners have established a joint venture, Livland Biomethane, to oversee the project. Viba expressed interest in eventually acquiring a majority stake in this new venture.
Viba highlighted the importance of biomethane in the future of the transport sector, noting that it will play a crucial role in enhancing sustainability and ensuring strong demand and profitability in the coming years. “The construction of the biomethane plant is the next strategic step in the company’s development to further strengthen and diversify its business model,” he added.
