A European energy developer has switched on a major biomethane plant in southern Italy that will save some 9,000 tons of CO2 annually by producing a natural gas substitute with agricultural waste.
Located in Grottole, in the ‘instep’ of the Italian Peninsula, the plant will ultimately produce 45 gigawatt-hours of renewable energy a year for decades.
More than almost any other major European economy, Italy runs on natural gas. It accounts for 46% of the country’s electricity generation—3-times more than the second-largest contributor hydropower—and the country’s utilities maintain substantial natgas infrastructure located all over the country.
Despite enjoying more diversified imports than any other European country, Italy doesn’t produce natural gas in any significant quantity. The national energy market is trying to vault two hurdles in one bound by leveraging existing gas infrastructure to develop a large biogas industry.
Italy’s capacity grew from 0.25 billion cubic meters of produced biomethane gas in 2022, to roughly 1.6 billion cubic meters in 2026. As a result, Italy’s largest domestic energy products are biofuels, representing 35% of the market; 1% more than all other renewable sources combined.
In 2024 in the region of Basilicata, the Euro energy group Axpo acquired the Grottole biomethane plant as a ready-to-build project, switched it on in July, and is now halfway through the 6-month ramp-up phase.
The Grottole biomethane plant uses agricultural byproducts from regional farms to produce low-carbon gas and fertilizer, directly supporting Europe’s decarbonization goals while strengthening energy security and the circular economy.
“Biomethane is central to Europe’s energy transition, and Grottole is central to our growth strategy,” said Axpo Head of Generation & Distribution / Deputy CEO Andy Heiz.
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“This moment represents years of strategic planning, careful execution, and close dialogue with local authorities. A significant demonstration of our continued commitment to renewable energy solutions, this is energy infrastructure that works, feeds the grid, and powers communities.”
Th 45GWh volume is equivalent to the average gas consumption of approximately 3,200 Italian households, helping to avoid around 9,000 tons of direct CO2 emissions annually compared to the usage of natural gas.
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The need and utility for biomethane as a natural gas substitute is all the more pressing as Europe heads into the colder months with stockpiles at historic lows due to the closure of the Strait of Hormuz and the destruction of Qatari natural gas refining facilities following the attack on Iran in February.
Axpo maintains biofuel plants in Spain, Italy, Switzerland, and Poland.
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