Wärtsilä has reached an agreement to acquire Puregas Solutions, the Swedish provider of turnkey biogas solutions.
Puregas has subsidiary companies in Germany, Denmark, the U.K., and the USA. The company utilizes what it calls a unique CApure process to convert raw biogas to biomethane and renewable natural gas. The transaction is valued €29 million with an additional maximum sum of €7.3 million to be paid based on the performance of the business in the coming year.
The acquisition will provide Wärtsilä with added equipment and expertise in biogas upgrading, and will complement well the company’s existing position in the biogas liquefaction market. In the larger context, Puregas Solutions’ offering is in close alignment with Wärtsilä’s own gas based technologies, and the merging of the two companies will expand Wärtsilä’s overall reach in the gas value chain, the company said.
“We are acquiring a company with technical know-how, good references, and a strong market position. It provides us, therefore, with a good platform to expand our offering and support our customers with complementary biogas upgrading and liquefaction solutions,” said Timo Koponen, vice president, Flow & Gas, Marine Solutions.
“Puregas Solutions has grown successfully in recent years and we have now reached the point where it makes sense to achieve further growth through joining forces with a truly global technology specialist. Wärtsilä is a company with a similar philosophy towards creating customer value as our own, and we look forward to an exciting future together,” said Jan Molin, CEO, Puregas Solutions.
The renewable natural gas market is closely aligned to Wärtsilä’s core business in gas solutions, and is expected to achieve solid growth going forward. The company currently has about 40 employees.