Baar-Zug, Switzerland; 12 June 2023
- The Platform has a 60 MW portfolio of 35 biogas plants and 10 biomethane plants
- The Platform benefits from strong infrastructure characteristics such as high barriers to entry, visible cashflows, and a well-invested asset base
- The production of biogas and biomethane is a next-generation infrastructure theme that is set to play a critical role in Europe’s energy transition and make a contribution to the achievement of net zero decarbonization goals
Partners Group, a leading global private markets firm, has agreed, on behalf of its clients, to acquire a leading biogas and biomethane energy platform in Germany (“the Platform”), from Energiedenker Group.
The Platform operates a 60 MW portfolio of 35 biogas plants and 10 biomethane plants across northeast Germany. Biogas is produced through bacteria digesting feedstock, such as crops, food waste or agricultural waste, and can be used as clean fuel to generate electricity that is sold into the grid under the German EEG (Renewable Energy Sources Act), similar to other renewable power generation technologies. The carbon dioxide in biogas can also be filtered out to create biomethane, a separate substance that is sold as a full substitute to natural gas. 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. The production of biogas and biomethane is a next-generation infrastructure theme in Europe that is experiencing multiple tailwinds, including regulatory support for clean energy sources, industrial decarbonization goals, and a heightened focus on energy independence. Within Europe, Germany has the largest biogas and biomethane markets, as well as ambitious production targets.
Following a rebrand, Partners Group 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, says: “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, adds: “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 commercializing 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’s Private Infrastructure business has USD 21 billion in assets under management globally. It has made over 170 infrastructure investments in 20 countries.