Snam biomethane unit to attract bids from Retina, Edison and F2i, sources say

By Francesca Landini and Elvira Pollina

MILAN, Sept 30 (Reuters) - Italian utility Edison EDNn.MI, infrastructure fund F2i and Retina Biometano are expected to submit binding offers for Bioenerys, the biomethane unit of Italy's gas grid operator Snam SRG.MI, according to three sources close to the matter.

The deadline for the final-round bids expires on Wednesday.

The unit could be valued at €400-500 million ($454-568 million), two of the sources said.

All the parties involved did not comment immediately.

Bioenerys controls 40 plants, split between 31 facilities under the Bioenerys Agri division which produce biomethane from agricultural and livestock waste, and 9 under Bioenerys Ambiente, which use organic waste.

Edison will bid only for Bioenerys Ambiente, while F2i is primarily interested in the Agri business, the sources said. Retina is interested in acquiring the entire business, they added.

Bioenerys is set to produce 160 million standard cubic metres of biomethane next year, giving it a 10% share of the Italian biomethane market, according to data published by Bioenerys.

As operator of the Italian gas grid, state-controlled Snam is required under market rules to sell its biomethane business.

Biomethane is produced through the treatment and purification of biogas, which is generated from the decomposition of organic matter.

It can be used for heating, cooking and all of the same applications as fossil fuel gas, but since it is derived from organic matter, it is considered renewable and carbon-neutral.

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