In a landmark move for Portugal’s energy transition, Capwatt is a pioneering Portuguese energy company that has secured €12.5 million in green financing to develop the country’s first biometane production facility in Aljustrel. This innovative project exemplifies the potential of sustainable energy solutions to simultaneously drive economic growth, environmental protection, and rural revitalization.

The Aljustrel project focuses on converting agro-industrial by-products into high-quality biometane, a renewable alternative to natural gas. Specifically, the facility will valorize waste from AZPO – Azeites de Portugal, transforming what would otherwise be environmental liabilities into a clean energy resource. Once operational, the plant is expected to produce 57 GWh/year of renewable gas and cut carbon emissions by approximately 23,000 tonnes of CO₂ equivalent annually.

Capwatt, founded in 2008 by Sonae Group’s energy sector expertise, is now a key player within Sonae Capital Industrials. With operations across Portugal, Spain, Italy, and Mexico, Capwatt focuses on decentralized energy production and services, including biomass, solar, wind, cogeneration, biogas, renewable methanol, and now biometane.

The Aljustrel facility stands as a beacon of circular economic principles. Agricultural, livestock, and industrial residues and often costly to dispose of, are repurposed into renewable gas and organic digestate, a by-product usable as natural fertilizer. This not only cuts emissions and waste but also generates new revenue streams for farmers and agro-industrial operators.

If replicated across other regions, projects like this could significantly bolster local economies while contributing to broader sustainability goals. By injecting biometane into the existing gas grid, it can be used in homes, industries, or even as a vehicle fuel and effectively replacing fossil fuels with a locally sourced, renewable alternative. This contributes to energy independence and enhances the security of supply, especially relevant in the current geopolitical climate.

Capwatt’s approach also has strong socio-economic implications. The project encourages collaboration between agricultural stakeholders, industries, and energy companies, while creating jobs and promoting regional development in areas like Aljustrel. Its potential to strengthen the local economy and reduce rural depopulation cannot be understated.

Certified in Quality, Environment, and Safety and as well as ISCC (International Sustainability and Carbon Certification) Capwatt exemplifies how forward-thinking companies can combine technological innovation with environmental stewardship.

In essence, the Aljustrel biometane project is more than an energy solution, it is a model for a greener, more inclusive economy. If expanded across Portugal and beyond, it could reshape the future of bioenergy and position the country as a leader in sustainable resource management.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes