Axpo switches on 45 GWh biomethane plant in Italy’s Grottole

A European energy developer has switched on a major biomethane plant in southern Italy that will save around 9,000 tons of CO2 annually by producing a natural gas substitute from agricultural waste.

Located in Grottole, in the ‘instep’ of the Italian Peninsula, the plant will ultimately produce 45 gigawatt-hours of renewable energy a year for decades.

The plant, acquired by Euro energy group Axpo in 2024 as a ready-to-build project in the Basilicata region, was switched on in July and is now halfway through its six-month ramp-up phase.

The Grottole plant uses agricultural byproducts from regional farms to produce low-carbon gas and fertilizer, directly supporting Europe’s decarbonization goals while strengthening energy security and the circular economy.

“Biomethane is central to Europe’s energy transition, and Grottole is central to our growth strategy,” said Axpo Head of Generation & Distribution / Deputy CEO Andy Heiz.

“This moment represents years of strategic planning, careful execution, and close dialogue with local authorities. A significant demonstration of our continued commitment to renewable energy solutions, this is energy infrastructure that works, feeds the grid, and powers communities.”

The 45 GWh volume is equivalent to the average gas consumption of approximately 3,200 Italian households, helping avoid around 9,000 tons of direct CO2 emissions annually compared to natural gas.

Italy relies heavily on natural gas, which accounts for 46% of its electricity generation, but produces little domestically. The country is leveraging its existing gas infrastructure to grow its biogas industry. Its biomethane capacity grew from 0.25 billion cubic meters in 2022 to roughly 1.6 billion cubic meters in 2026, making biofuels its largest domestic energy product at 35% of the market.