Europe’s continued dependence on fossil fuels, notably natural gas, presents a critical challenge to its climate goals, especially as the geopolitical instability of recent years has exposed the continent’s unsustainable reliance on imported gas, notably from the United States. In response, some key actors are already investing in biogas to help prop up the European energy market and boost the ambitious European climate targets under the European Green Deal and REPowerEU.
Europe is facing a critical energy challenge as its dependence on fossil fuels continues to pose significant risks to both its economy and climate objectives. In 2022, the EU’s energy import dependency ratio reached its highest point over the sample period at 62.5 percent, according to Federal Reserve analysis consistent with Eurostat data. This energy vulnerability became particularly evident during the geopolitical crisis linked to the conflict in Ukraine, which highlighted the risks of excessive dependence on external supplies.
In this context, biogas and biomethane are emerging as promising alternative solutions to reduce this dependency while contributing to decarbonisation goals. In February 2024, the European Commission published its Communication describing the ambitious climate target for 2040, which proposes a 90% reduction in greenhouse gas emissions. This ambition requires a profound transformation of the European energy system, in which green gases play a crucial role.
A sector facing infrastructure delays
The European biogas sector is currently experiencing a period of significant transformation, yet it faces substantial challenges in meeting deployment targets. According to the European Biogas Association, “investing in biogas technologies means advancing energy and food security, reducing dependency on external suppliers, combatting climate change, and supporting the implementation of a circular economy.” The sector offers multiple benefits including grid stability, affordable energy, and efficient waste management solutions.
However, the development of biogas infrastructure is experiencing concerning delays compared to European objectives. Europe is off track to meet its 2030 climate targets despite record investments in clean energy, according to a recent analysis by BloombergNEF. This delay in the deployment of biogas infrastructure projects represents a real risk for Europe’s climate agenda and requires urgent mobilisation of private investors.
The infrastructure gap is particularly pronounced in the biogas sector, where complex regulatory frameworks, lengthy permitting processes, and financing challenges have slowed project development. The European Commission has set an ambitious target of 35 billion cubic meters of annual biomethane production by 2030 in its REPowerEU plan, compared to the current 3 bcm of biomethane and 15 bcm of biogas produced in the EU-27 today.
Meridiam: investing in ecological transition
Facing these challenges, Meridiam, an asset manager specialising in sustainable infrastructure, has positioned itself as a key player in the European energy transition. The French company, which manages over €17 billion in assets, has made ecological transition one of its strategic priorities. In December 2024, Meridiam became the majority shareholder of Evergaz, a leading French biogas operator, after contributing €57 million to a €60 million capital increase organised by Transition Evergreen, an impact investment fund dedicated to ecological transition. The remaining €3 million was subscribed by SWEN Capital Partners, another long-term investor in renewable energy infrastructure. The deal also involved the conversion of €20 million in convertible bonds from previous financing rounds, primarily underwritten by BPI France and Eiffel Gaz Vert, into equity, thus simplifying the ownership structure and freeing Evergaz to accelerate its expansion plans.
Evergaz, founded in 2008 (initially as Holding Verte), had already established a footprint across France, Belgium, and Germany. As of late 2024, the company operated 14 biogas plants, with nearly 30 MW of installed electric capacity, processing hundreds of thousands of tonnes of organic waste each year. A 2021 acquisition of Germany’s C4 Group added ten additional plants—9.6 MW of capacity and over 1,300 Nm³ of daily biomethane injection—expanding Evergaz’s cross-border reach .
According to the press release, the funding “is aimed at rolling out its ambitious industrial plan and strengthening the company’s leadership in its core markets,” and equips it to continue implementing its industrial roadmap. Alain Planchot, Chairman and CEO of Evergaz, remarked: “I am very pleased with the support and confidence shown by our historical shareholders. I am convinced that their commitment will enable Evergaz to successfully complete its ambitious industrial project and assert its position as the leading independent biogas producer in Europe.”
Lionel Le Maux, Chairman of Transition Evergreen, emphasised the deal’s context: “2023 was marked by stagnating levels of high interest rates and tighter access to the capital markets, we oversaw major capital transactions as illustrated by Evergaz (€20 million capital-raising)”. His comments highlight the challenges Evergaz overcame in a stricter financing environment.
A strategic partnership
The partnership between Meridiam and Evergaz is part of an ambitious industrial development strategy. Evergaz has partnered with Meridiam Transition, a fund dedicated to ecological transition in European infrastructure, to develop, own and operate thirty biogas installations across Europe. This collaboration aims to accelerate the deployment of installations that can transform organic waste into renewable energy.
The partnership represents more than just financial investment; it embodies a comprehensive approach to sustainable infrastructure development. The collaboration focuses on developing biogas plants that can process various types of organic waste, from agricultural residues to food waste, creating a circular economy model that addresses both waste management and energy production challenges.
This industrial plan aligns with European Union objectives for developing renewable gas production capacity. The REPowerEU plan, launched in response to the energy crisis, specifically identifies biogas and biomethane as priority technologies for reducing dependence on imported fossil fuels.
Meridiam’s bet on biogas reflects a broader trend among institutional investors increasingly focused on energy transition assets. The investment thesis is supported by favourable regulatory frameworks, including the European Green Deal and national renewable energy strategies that prioritise biogas development.
The success of investments like Meridiam’s Evergaz partnership will be crucial for Europe’s ability to meet its climate commitments while ensuring energy security. The biogas sector’s development represents a practical solution to multiple challenges: reducing greenhouse gas emissions, managing organic waste, supporting rural economies, and decreasing dependence on imported fossil fuels.
As Europe continues to grapple with energy security concerns and climate obligations, the role of committed investors like Meridiam becomes increasingly important. Their willingness to deploy significant capital in biogas infrastructure development provides the financial foundation necessary for scaling up this critical technology.