Energy resources trader Virsi-A, which operates under the brand Virsi, plans to start biomethane production in a new plant in the second half of 2025, Virsi-A Chairman of the Board Janis Viba said on 16 August.
The facility will be co-built with partners, and located in the Vidzeme region.
The total cost will be €15 million, with €12 million coming from the European Energy Efficiency Fund.
"We are now in the final stages of the design and building permits so that we can start construction. The ground works are planned to be carried out this year, while the technology and equipment issues are planned to be implemented next year so that biomethane production can start by the end of 2025," said Viba.
The project will be built for three reasons.
Firstly, it will bring a good financial return, because the biomethane produced will primarily be exported to European markets.
"Not only in the transport sector, but also in other sectors, the demand for biomethane is high, because we need to show that companies are also using this 'green' energy," he added.
Another reason is the strategic location of Vidzeme. It is surrounded by large farms that will generate the raw materials needed - manure - to initially produce biogas and then refine it into biomethane.
There is also a gas pipeline adjacent to the site.
Finally, the project is an excellent way to diversify the business model in the long term.
The company and partners have established a joint venture Livland Biomethane that is responsible for this project.
In the long term, Viba wants to obtain a majority of shares in the new venture.
"The construction of the biomethane plant is the next strategic step in the company’s development to further strengthen and diversify its business model," added Viba.
"We believe that biomethane will play a critical role in making the transport sector more sustainable in the future, ensuring strong demand and profitability for this product in the coming years.”
Latvian firm Virsi plans biomethane plant
