BBVA is stepping up its focus on biomethane as a near-term decarbonisation solution, positioning the fuel as a practical pathway for companies seeking to cut emissions without major infrastructure changes.
Through its Cleantech business line, BBVA is expanding financing for biomethane projects, which produce a renewable gas identical to fossil natural gas using organic waste from agricultural and livestock sources. Because biomethane can be injected directly into existing gas grids, it allows companies already using natural gas to decarbonise quickly and at lower cost.
“Biomethane is a well-established, mature technology in many European countries such as France, Germany and the Netherlands,” said Karla Ceño, executive director for project finance cleantech at BBVA CIB. “Now, with Europe’s ambitious decarbonisation goals, it offers a very straightforward route for large companies to reduce their emissions by leveraging a proven technology.”
While uptake in Spain and Italy has lagged northern Europe, BBVA sees strong growth potential. “Spain and Portugal are among the largest waste producers in Europe,” Ceño said, adding that EU regulation is accelerating deployment. Beyond Europe, the bank also identifies Latin America—particularly Brazil and Argentina—as key future markets, drawing on experience gained in Europe.
BBVA has prioritised project finance as its preferred model for biomethane, allowing funding to be structured around project cash flows and enabling scalable investment. “We have been pioneers in financing biomethane projects under project finance structures,” Ceño said.
She pointed to recent deals including Ence’s La Galera project in Spain, financing for Verdalia, three plants closed with Total last year, and BBVA’s first biomethane financing in Italy alongside Suma Capital, involving the conversion of seven biogas plants.
Biomethane sits within BBVA’s “green molecules” strategy, one of four cleantech pillars alongside energy storage, electric mobility and the CO₂ value chain. The bank said the technology is central to helping corporates decarbonise in the short to medium term while supporting a broader shift towards a circular, low-carbon economy.
