A DWS-managed European infrastructure fund has partnered with MEAG, the asset management arm of insurers Munich Re and Ergo, to buy German biomethane producer Weltec.
DWS’s third Pan-European Infrastructure Fund (PEIF III) and MEAG have invested an unspecified amount to acquire the Vechta-based company that owns and operates five biomethane and four biogas plants in Germany.
The new owners said they plan to invest to help increase biomethane production volumes across its portfolio.
“These investments include upgrading the four biogas plants to produce biomethane, transitioning the plants’ feedstock mix to sustainable, waste-based sources, in line with circular-economy best practices, and installing onsite CO₂ liquefaction technology to further reduce Weltec’s carbon footprint.”
Thomas Kalthoefer, senior principal for infrastructure investments at DWS said: “We are pleased to be working with MEAG to further invest in Weltec’s existing portfolio of high-quality assets, against the backdrop of the critical European energy transition to more renewable sources.
“With this acquisition, we see attractive growth potential via both greenfield and brownfield opportunities, supported by the company’s integrated feedstock procurement and logistics business, which provides Weltec with secure and direct access to farmers and raw materials.”
Dominik Damaschke, the head of infrastructure equity at MEAG said: “The increasing role of biomethane for the decarbonisation of the transport sector and the transformation of the energy industry ensure a strong long-term demand for biomethane. Accordingly, we expect sustainable attractive returns for our investors in a promising business area.”
Jens Albartus, CEO of Weltec said: “With DWS and MEAG, we are pleased to have found strong shareholders that support us on our path of continuous growth.
“Our strategy of extending and enhancing our portfolio of renewable gas and energy production assets to support the decarbonisation and further strengthen the European energy independence is fully aligned with the investment approach of DWS and MEAG.”
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