Renewable energy operator Engie has announced the acquisition of the Spanish company District Heating Eco Energías, which specialises in developing district heating networks based on biomass and other renewable resources. With this transaction, the French company is consolidating its position in the heating and cooling networks market in Spain.

In addition, Engie has bought a majority stake in the company Ávila Eco Energías, which is the driving force behind the Ávila heat network. It has in fact been awarded 70.74% of the infrastructure, which has been developed by District Heating Eco Energías and will begin to generate energy from forest biomass in the coming weeks.

Lower emissions
District Heating Eco Energías has an extensive portfolio of projects that have already been approved by the Ministry for Ecological Transition in the Climate Project category and that demonstrate its capacity to reduce greenhouse gas emissions. Engie also has a solid track record in developing and managing urban heating and cooling networks, with major projects in Barcelona, Zaragoza, Palencia and Pamplona.

These acquisitions expand Engie's presence in existing projects and do at the same time boost its growth in new projects and operations. Through District Heating Eco Energías, the company will expand the range of services it already provides to the Palencia heat network, in which it is a shareholder, and will take a minority stake in the Zamora heat network, which is based on the use of forest biomass. In addition, the Spanish company also provides a portfolio of projects at different stages of development.

Sustainable energy model
The CEO of Engie Solutions Spain, Janis Rey, says that this transaction is “a clear reflection of our commitment to growth in the cooling and heating networks industry, infrastructure that we consider key in the transition to a sustainable, efficient and decentralised energy model, as well as in the fight against climate change in cities. District Heating Eco Energías brings a strong project portfolio and an experienced management team that will be instrumental in consolidating our growth and leadership in developing and managing heating and cooling networks in Spain.”

District Heating Eco Energías’ President Teo López added, “A change in the energy model of Spanish cities is needed, and heat networks based on renewable energy represent an efficient solution in line with European and national energy innovation guidelines and policies”.

^{Photo: Engie}