Italian Eni's subsidiary, Ecofuel, has agreed to acquire the leading Italian biogas production company, FRI-EL Green Power SA, Eni announced in a statement on Monday.
"This acquisition sees Eni strengthening its growth in the circular economy, laying the foundations to become the first producer of biomethane in Italy," the company stated.
FRI-EL Biogas Holding owns 21 plants generating electricity from biogas and a plant for processing the organic fraction of municipal solid waste (OFMSW).
Eni plans to produce biomethane at the plant, which when fully operational, will supply over 50 million cubic meters per year to the network.
The deal is part of Eni's broader decarbonization strategy, which has the goal of eliminating all emissions from industrial processes and products by 2050.
By Gulsen Cagatay