GEF Capital Partners and ENC Energy SGPS have sold ENC Energy Brazil to Gás Verde, a subsidiary of Urca Energia

ENC Energy Brazil

Founded in 2012, ENC Energy Brazil (ENC Brazil) is a leading builder, owner and operator of LFGTE (landfill gas-to-energy) plants in Brazil, with more than 20% expected market share in 2023. ENC Brazil operates nine biogas plants strategically located across the South, Southeast and Northeast regions of Brazil. These plants collectively boast an installed capacity of approximately 34 megawatts. ENC Brazil leverages its biogas generation to sell electric energy in both the free market and distributed generation to reputable blue-chip companies seeking sustainable energy solutions.

The Deal

ENC Brazil will now be part of Gás Verde, a subsidiary of Urca Energia with headquarters in Rio de Janeiro focused on the production of biomethane. Gás Verde has acquired seven out of the nine operating plants, as part of a R$600 million total investment to transform part of the biogas generated into biomethane. The acquisition follows Urca Energia’s strategy of increasing its biomethane production, enabling the company to elevate its current market share from 50% to 70%.

Our Perspective

Luiz Recchia, Managing Director in Lincoln’s São Paulo office, commented, “We are thrilled to have achieved a favorable outcome for our client amidst a highly competitive process that attracted numerous bids. The journey required dedication from all parties involved, ultimately resulting in the selection of a final bidder who recognized the tremendous value generated by the conversion of the biogas plants into biomethane. As ENC Brazil embarks on this new venture, becoming a vital component of the largest biomethane producer in Latin America, we extend our best wishes for their ongoing success. It is a tremendous honor for us to be a part of this transformative transaction, further strengthening our renewable energy credentials in Brazil.”

Urca Energia

Founded in 2018, Urca Energia is a holding company headquartered in Rio de Janeiro, with investments in intelligent and sustainable energy, that operates in the free and regulated energy markets. The holding company is formed by Gás Verde, Eva Energia, Urca Trading and Urca Gás. Gás Verde is the biggest biomethane producer in Latin America and was acquired by Urca Energia in January 2022.

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