The European Investment Fund has committed €200m ($232m) to Copenhagen Infrastructure Partners’ Advanced Bioenergy Fund II, giving the Danish energy infrastructure fund manager a cornerstone investor for a vehicle targeting €1.5bn ($1.74bn), according to the European Investment Fund.
The fund will focus on greenfield biomethane and advanced bioenergy projects in Denmark, Ireland, Spain, Belgium and Finland, mainly through new industrial-scale biogas plants using anaerobic digestion technology.
The plants will convert manure and other agricultural waste into biomethane for use in sectors including industry and maritime transport.
The commitment is backed by the EU’s InvestEU and REPowerEU initiatives.
“This investment reflects Europe’s growing focus on renewable gases and sustainable energy infrastructure,” EIF deputy chief executive Merete Clausen said.
CIP partner and head of the advanced bioenergy team Thomas Dalsgaard said the EIF commitment was “an important step” towards ABF II’s €1.5bn target.
“We see strong market demand for the production of domestic biomethane across Europe and with the Advanced Bioenergy Fund II, and the existing portfolio of greenfield bioenergy projects, CIP is well positioned to deliver,” Dalsgaard said.
Copenhagen Infrastructure Partners is a Danish fund manager founded in 2012 and focused on energy infrastructure, including wind, solar, energy storage, transmission and distribution, advanced bioenergy, low-carbon fuels and carbon capture.
The European Investment Fund is part of the EIB Group and provides guarantees and equity financing to support access to finance for European businesses and projects.