Deloitte is dedicated to helping organisations tackle their most complex business challenges, so acting as financial advisor to our client, Waterford-based anaerobic digestion (AD) developer Ormonde Organics, as they sought acquisition, had a meaningful impact across Deloitte’s M&A team. The company was acquired by European biogas developer Heygaz earlier this year.
Deloitte’s Jan Fitzell and Richard Dennehy led the project. “We were able to provide insights from local and international sector experts to effectively position the business and to provide proactive advice to the shareholders on both the financial and non-valuation aspects of the offers received,” explains Dennehy, a director in Deloitte.
“We used our networks across Europe to identify and connect with the most suitable investors for this transaction who would enable our client to maximise their potential and play a leading role in the development of Ireland’s green economy.
“The more we move towards renewable energy,” Dennehy points out, “the more demand we are seeing for these types of consolidations.”
Biogas is produced from the decomposition of organic material. With the help of a range of bacteria, organic matter breaks down and releases methane and carbon dioxide. That methane and carbon dioxide is then used to generate renewable energy.
Biomethane is the upgraded form of biogas, consisting of almost 100% methane and similar to natural gas in quality. The deployment of biomethane to replace fossil fuels is important, especially given the existing gas infrastructure is biomethane-ready – key to ramping up decarbonisation and providing affordable renewable energy for consumers.
Ormonde Organics currently operates two anaerobic digestion plants – one in Waterford and another in Cork. A third plant is expected to be operational by the end of next year.
Currently most of the biogas produced by these plants is used to generate renewable electricity, while a small portion is upgraded into biomethane and sold as bio-compressed natural gas (CNG). But Ormonde Organics is also developing a facility to inject biomethane directly into Ireland’s national gas transmission grid.
Deloitte’s Jan Fitzell says that Ireland now has a real opportunity to embrace this field which aligns well with the Governments’ recent commitment to increase biomethane production.
“Biomethane production offers a sustainable, locally sourced energy solution that can address waste management challenges and can significantly reduce greenhouse gas emissions. We are likely to see more of these types of opportunities entering the Irish market, leveraging our strong technical capabilities and professional skills base when it comes to realising Ireland’s green ambition."
