Nevel acquired Envor's biogas operations – "Biogas is a big boy's game"

Family business Envor has sold its biogas business to Nevel, an energy infrastructure player in industry and real estate.

The value of the deal, confirmed in early October, is not being disclosed.

The transaction will transfer the biogas plants in Forssa and Pori, as well as the plant project planned for Kotka, the biogas plant personnel and some of the sludge treatment contracts to Nevel. In connection with the transaction, ten employees will be transferred from Envor to Nevel.

Negotiations for the deal began when Envor applied for financing for a new plant solution in Kotka.

“Biogas is a big boy’s game. Traditional financing is difficult to obtain. That’s when these types of arrangements come into play,” Envori’s senior advisor Mika Laine is watching.

Negotiations are underway for the Kotka plant. If implemented, the plant would process 35–000 tons of biomass. Envor has signed a long-term agreement with Nevel for the procurement of biowaste.

The deal will provide greater leverage to finance not only the approximately 22 million euro plant project in Kotka, but also the expansions in Forssa and Pori.

"When we were looking for a financier, Nevel stood out. We see broader cooperation opportunities here," Envor's Business Director Santeri Laine says.

Circular economy business is growing

CEO of Nevel Thomas Luther says that it plans to invest in the development of its operations. The transaction supports the company's strategy and sustainability goals in promoting the green transition and circular economy locally.

“Circular economy has been part of Nevel’s strategy for the past five years. The transaction we have just made is a strategic opportunity for us to grow our circular economy business, which currently accounts for ten percent of Nevel’s revenue. We plan to grow both in Finland and in our other market areas,” says Nevel’s new ventures director. Teemu Klingberg.

Nevel has municipal and real estate customers as well as around a hundred industrial customers, to whom the company offers decentralized energy and circular economy solutions in Finland, Sweden and Estonia. Nevel operates a total of over 130 energy production plants and manages over forty district heating networks.

Envor plans to focus more strongly on providing comprehensive waste management services in the future. Business Director Santeri Laine says that the company aims to grow and expand geographically across Finland over the next five years, both through organic growth and acquisitions.

Text: Elina Saarinen/ Uusiouutiset-magazine

Photo: Santeri Laine. Envor's Pori and Forssa biogas plants will be moved to Neveli.