Axpo enters the Polish biogas market: its first own plant in Stare Ślepce

The Swiss energy group Axpo has bought an agricultural biogas plant in Stare Ślepce in the West Pomeranian Voivodeship, as announced on 23 October 2024. It is the group's first own asset in Poland, where until now it had mainly traded electricity and gas for business customers. The purchase was made from private shareholders; the price was not disclosed.

Details of the transaction and the plant

The biogas plant has been operating since the end of 2020. It processes about 20,000 tonnes of substrates a year, mainly agricultural waste, and generates about 6,640 MWh of electricity, which is fed into the grid and joins the green portfolio of Axpo Polska. The digestate goes to local farmers as fertiliser. The group announced that it would upgrade the plant and bring it into line with its own standards within the coming months, and that further biogas projects in the country would follow. The materials did not state the installed capacity, the price or the exact date of the transaction.

Axpo names Poland as one of the five European markets it has chosen for biogas development. Earlier – in late 2023 – the group also announced energy storage in Poland and investments in photovoltaic farms.

What this means

Axpo's entry fits a broader trend: foreign energy and trading companies are buying operating agricultural biogas plants (E.ON, TotalEnergies through PGB, Orlen, Suez) in order to build a biogas production portfolio and later convert it into biomethane. A trader experienced in gas and guarantees of origin is a natural partner for farmers who want to sell biomethane but have no trading back-office.

Significance for the industry in Poland

For owners of small and medium-sized biogas plants who are considering a sale, the Axpo transaction is a reference point: a secondary market exists, and buyers are looking for plants with a production history and stable substrate contracts. For farmers who supply substrates, a change of owner usually means renegotiating contracts and higher quality requirements. It is also important for the Polish industry that capital from Western Europe can help finance upgrades.

It is worth noting that the entry of a large trader coincides with the wait for a new biomethane support system: these groups have expertise in long-term contracts and price-risk management.

What next

Axpo has announced an upgrade of the plant and further biogas projects in Poland. It will be worth watching whether the group decides to build biomethane plants or to acquire further facilities, and how it arranges its relations with the farmers who supply substrates. For the market, it will matter whether the growing involvement of traders and international groups translates into greater liquidity in the market for biomethane guarantees of origin.