Global private markets firm Partners Group has agreed to acquire a leading biogas and biomethane energy platform in Germany from Energiedenker Group.
The Platform operates a 60 MW portfolio of 35 biogas plants and 10 biomethane plants across Northeast Germany.
The Platform has strong infrastructure characteristics and benefits from a large asset base with high barriers to entry, visible cash flows and long-term contracts. Within Europe, Germany has the largest biogas and biomethane markets, as well as ambitious production targets.
Following a rebrand, Partners Group said it will work with management on several value creation initiatives, including building out the Platform’s project pipeline, developing innovative ancillary service lines, and strengthening its contract management capabilities.
David Daum, managing director, co-head private infrastructure Europe, Partners Group, said: “We are investing in an infrastructure platform that is benefitting from tailwinds driving the transition of biogas and biomethane from peripheral fuels into mainstream energy sources. The cyclical nature of renewables combined with the phase out of fossil fuels will likely increase demand for baseload power as well as flexible electricity generation. Biogas and biomethane are ideal alternative fuel sources as established natural gas infrastructure can be used without requiring any additional capex. We look forward to working with the management team on our value creation plan.”
Kevin Gilhawley, member of management, Private Infrastructure Europe, added: “The Platform has established operations and is cash-generating. Through our thematic research, we have built strong conviction in the growth potential of biomethane as an alternative fuel and in capturing and commercialising carbon dioxide. Additionally, only a fraction of Germany’s biogas and biomethane plants are ready to use other sources of feedstock, providing further opportunities for us to create value by expanding the inputs that can be accepted.”
Partners Group purchases bioenergy platform from Energiedenker Group
