By Giulia Petroni

Naturgy Energy Group SA said Tuesday that its gas-distribution subsidiary Nedgia SA has signed a contract with Spanish business Torre Santamaria to transport its biogas to a network in Lleida, Spain.

Nedgia will transport 30 gigawatt hours a year of the gas Torre Santamaria produces from organic waste at its farm in Balaguer, according to the Spanish energy company. In order to connect the farm and the distribution networks, the subsidiary will build 1 kilometer of network and related infrastructure.

"The gas distribution infrastructures are decisive in the decarbonisation process, since they already distribute renewable gas, and hydrogen can also circulate through them in the future," Naturgy said.

The contract is part of the Spanish company's commitment to sustainability and circular economy according to its environmental plan, it said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

11-03-20 0659ET