Crossminds advises Renewable Energy Services in acquisition by VARO Energy, with a focus on the European biogas market.

Crossminds played an advisory role in the acquisition of Renewable Energy Services (RES) by VARO Energy. Through this acquisition, VARO aims to further develop the European renewable energy market alongside the RES team and support businesses in achieving carbon-free operations.

The biogas market

The biogas market is rapidly emerging. In July 2022, the Dutch government outlined plans for a green gas blending mandate starting in 2025. This means gas suppliers will be required to blend a percentage of biogas into their natural gas supply or purchase green gas certificates. Additionally, the Climate Agreement stipulates that by 2030, at least 20% of the gas sold must be green. Originally, biogas production primarily came from small agricultural businesses, but this mandate is making the market increasingly attractive to larger companies and investors. As reported by Het Financieele Dagblad, “The blending mandate results in higher prices, contributing to profitability.”

About Renewable Energy Services (RES)

RES, based in North Brabant, is one of Europe’s leading suppliers and traders of biomethane and bio-LNG. In 2022, the company delivered 250,000 MWh of biogas, equivalent to the consumption of 100,000 households. RES is on track to meet its goal of 1,000,000 MWh of green gas in 2023. The company is dedicated to providing seamless service for both producers and consumers of biogas, supporting the energy transition.

An averview of VARO Energy

VARO Energy, a subsidiary of The Carlyle Group—a global investment firm—has been active in the energy sector since 2012. The Swiss company has focused on becoming a key player in the energy transition since 2022. With this vision, they aim to achieve net-zero emissions by 2040. VARO specializes in (bio)fuels, biogas, hydrogen, and carbon capture.

Acquisition details

VARO has acquired all shares of RES. They view biogas as a crucial element in the energy transition and hope to strengthen their presence in the European biogas market with the addition of RES. For RES, this transaction offers an opportunity for further growth and expansion of their vision.

Crossminds was represented by Lars van Heeren and Niels Meijer during this process.