- VARO secured a $165 million green loan to refinance the acquisition of Bio Energy Coevorden.
- The loan is part of a wider $3.33 billion financing package.
- VARO aims to double BEC's biogas capacity to 650 GWh by 2026.
- The loan aligns with UN SDGs 7 and 13 and meets Loan Market Association’s Green Loan Principles.
Green Loan Acquisition
VARO Energy has successfully secured a $165 million green loan, marking the first in the company’s history. This loan is part of a broader $3.33 billion financing package and will be used to partly refinance VARO’s acquisition of the Bio Energy Coevorden (BEC) biogas manufacturing facility.
Biogas Business Expansion
The green loan is a significant milestone in VARO’s biogas business, one of the five strategic growth pillars under its ONE VARO Transformation strategy. Since launching this strategy in July 2022, VARO has acquired BEC, the largest biogas manufacturing facility in Northern Europe, and Renewables Energy Services (RES), a leading trader of biogas and green credits.
Future Capacity Goals
VARO plans to scale its biogas business by more than doubling BEC’s manufacturing capacity to 650 GWh of biogas by 2026. Additionally, the company has a trading capacity of 1 TWh of biogas and green certificates annually.
Compliance and Verification
The green loan was independently assessed and verified by ISS ICS, confirming that VARO’s use and management of proceeds comply with the Loan Market Association’s Green Loan Principles. The report also stated that the loan aligns with the UN’s Sustainable Development Goals 7 (affordable and clean energy) and 13 (climate action).
Financial Coordination
ING Bank N.V. acted as the Sustainability Coordinator for the Green Term Loan Tranche, ensuring that the loan meets stringent ESG criteria.
