The technology group Wärtsilä has reached an agreement to acquire Puregas Solutions, a Sweden-based provider of turnkey biogas upgrading solutions. Puregas is a leading player in its field with subsidiary companies in Germany, Denmark, the UK, and the US. The company utilizes a unique CApure process to convert raw biogas to biomethane and renewable natural gas.
The CApure process recovers more than 99.9% of the biomethane present in the raw biogas. The process separates the CO2 from the biogas by a process of chemical adsorption. The selective organic solvents used in this process are so efficient that the end product can contain more than 99% methane and is suitable for vehicle fuel or to be injected into the natural gas grid.
As the final product is so pure there is often no requirement to enrich with propane. Siloxane removal is extremely efficient with contents of less than 0.05 mg/Nm3, which is the lowest detectable level for today’s instruments.
Unlike other technologies the CApure process is highly tolerant of changes to the raw gas composition resulting from changes in feedstocks.
The transaction is valued (enterprise value) at SEK 280 million (US$34.4 million) with an additional maximum sum of SEK 70 million (US$8.6 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 (marine and stationary power), and the merging of the two companies will expand Wärtsilä’s overall reach in the gas value chain.
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.—Timo Koponen, Wärtsilä Vice President, Flow & Gas, Marine 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. In 2016, Puregas Solutions’ turnover was SEK 200 million (US$25 million) and the profitability level was good. The company currently has about 40 employees.