CVC acquires 49% stake in major German biogas producer

CVC DIF, the infrastructure strategy of a leading global private markets manager CVC, has agreed to acquire 49% of German biogas producer BALANCE.
BALANCE is a subsidiary of Leipzig-based gas company VNG AG (VNG).
The investment in BALANCE will be made through the DIF Infrastructure VII (DIF VII) fund and will support the ongoing growth of the business.
Biogas is an important component in tomorrow’s decentralised energy system and is already helping to increase the share of green gases in the grid, said CVC.
Compared to wind and solar energy, biogas offers a decisive advantage: its production is independent of weather conditions, it added.
Biogas is a reliable energy source that can be stored and flexibly complements other forms of renewable energy.
BALANCE currently has a portfolio of 42 biogas facilities in Northern and Eastern Germany with a total installed rated thermal output of around 197 MW.
This makes BALANCE one of the largest biogas plant operators in Germany, supplying green energy to more than 180,000 households every year.
In selecting the investor, VNG said it placed particular emphasis on finding a long-term, reliable partner with whom it could jointly develop BALANCE.
The partnership with CVC DIF aims to further drive BALANCE's growth, with the vision of becoming the leading biogas platform in Germany.
With the sale of the minority stake, VNG remains the majority shareholder. BALANCE will continue to be fully consolidated within the VNG Group.
Ulf Heitmüller, CEO of VNG, said: “We are delighted to have gained a partner for BALANCE in CVC DIF, a party that brings a wealth of expertise in supporting its financial investments on their growth path through active value creation.
"CVC DIF also shares our perspective on biogas as an energy source, the potential of BALANCE, and values such as trust and transparency in our collaboration.
"Together we can further strengthen BALANCE's growth and competitiveness and, in line with our 'VNG 2030+' corporate strategy, expand our green gas portfolio in the future. In this way, we are making an important contribution to the supply of renewable and sustainable energy.”
Gijs Voskuyl, Managing Partner of CVC DIF, added: “The dynamics in the biogas market make it clear: biogas is a key component in the decarbonisation of the energy industry. On the back of strong regulatory tailwinds, we want to actively support this development and see the partnership with VNG as offering a highly professional setup and thus ideal conditions for BALANCE as a platform in Germany to participate in market growth.
"We are convinced that BALANCE is a high-quality investment that will provide our investors with stable returns and offer potential for long-term growth and sustainable value creation.”