REGA ENERGY and Pasto Alentejano Partner to Produce Biomethane in Sousel

25-year partnership between the century-old Sousel company and REGA ENERGY drives industrial decarbonization and the energy transition.

Pasto Alentejano has signed a 25-year strategic agreement with REGA ENERGY to supply agricultural effluents to REGA ENERGY’s future biomethane production facility in Sousel, Portugal.

This long-term partnership reflects a shared commitment between the two companies to transform agricultural effluents into value, support the decarbonization of energy networks, and promote a more sustainable and circular approach to both industry and agriculture.

A national benchmark in the agri-food sector, Pasto Alentejano specializes in sheep production. Based in Sousel, the company exports more than 70% of its output and has been implementing a “Zero Waste” strategy, maximizing the use of animal by-products such as wool.

REGA ENERGY had previously announced an investment of over €40 million to build a biomethane production plant near Sousel, capable of processing 271,500 tonnes of livestock effluents per year. Through anaerobic digestion, these residues will be converted into around 165 GWh of biomethane — a renewable gas to be injected into the national grid, roughly equivalent to the entire annual natural gas consumption of the Portalegre district.

In addition to renewable gas, the process will also generate around 236,000 tonnes of digestate per year — a natural, treated fertilizer that can be returned to farmers, closing the loop of nutrient and energy recovery.

The project is a clear example of circular economy principles applied to agriculture: turning waste into renewable energy and soil nutrients, while fostering environmental sustainability, energy independence, and regional development. At the same time, the biomethane produced — as a renewable energy source — will contribute to decarbonizing gas consumption and advancing national and European energy transition goals.