24 March, 2025

Capwatt develops Portugal’s first biomethane production project using agro-industrial by-products

  • The facility, with a total investment of approximately €20 million, will process 160,000 m³ of olive oil industry by-products per year and enable the production of 57 GWh/year of renewable natural gas, fostering local development.

  • Portugal’s first biomethane production project using agro-industrial by-products contributes to the decarbonization of the energy sector and promotes the circular economy.

Capwatt, a leading multinational group in sustainable energy solutions, is developing a pioneering biomethane production project in Portugal. Located in Aljustrel, the project aims to convert agro-industrial by-products into high-quality biomethane, contributing to the decarbonization of the energy sector and fostering a circular economy.

This facility, the first in Portugal dedicated to biomethane production from agro-industrial by-products, will process by-products from AZPO – Azeites de Portugal through an energy recovery process, minimizing their environmental impact. The project is expected to generate significant environmental benefits, supporting European climate goals by reducing CO₂ equivalent emissions by an estimated 23,000 tons per year. Additionally, it will process 160,000 m³ of agro-industrial by-products annually and enable the generation of 57 GWh/year of renewable natural gas.

With a €20 million investment, the new facility will also drive local development by creating direct and indirect jobs in the Aljustrel region. The project further aims to establish partnerships with local farmers and industries, fostering a sustainable ecosystem and amplifying its positive impact not only environmentally but also socially and economically.

Filipa Nolasco, Chief Financial Officer of Capwatt, highlights: “Biomethane production is a crucial step in reducing dependence on fossil fuels while simultaneously adding value to agro-industrial by-products and improving our ecological footprint. This project, the first in Portugal focused on biomethane production from agro-industrial by-products, aligns with the Group’s strategy of investing in biomethane as one of our key growth drivers for the coming years. It also reinforces our commitment to innovation, energy transition, and environmental sustainability.

Cristiano Amaro, Head of Biomethane at Capwatt, underscores the importance of such initiatives: “Achieving carbon neutrality requires more than just renewable electricity – it is essential to decarbonize sectors that remain heavily dependent on fossil fuels. Biomethane can replace natural gas in industry and transport while leveraging existing infrastructure. Moreover, it enables the sustainable management of organic waste, contributing to a cleaner and more efficient economy."