The European Investment Bank (EIB) has made a €60m commitment to Solas Capital’s latest European energy efficiency infrastructure fund, which is seeking to raise €300m.

EIB’s commitment to Solas Sustainable Energy Fund (SSEF) II follows a €30m cornerstone investment the European Union lending arm made into a predecessor fund, which reached a final close of €220m in 2022.

The SSEF fund series employs a blended finance strategy that utilises public guarantees to provide credit protection for institutional investors.

Solas Capital said the fund enables SMEs and industrial, commercial and public sector clients to deploy energy efficient technologies such as heat pumps, LED lighting and rooftop solar through long-term service contracts, eliminating upfront costs while reducing electricity bills and emissions.

Ambroise Fayolle, EIB vice-president, said: “We are helping deliver real impact through energy efficiency as a service and are happy to scale the financing of these activities alongside Solas Capital’s successor fund. The result will be lower energy bills for companies and a stronger European economy.”

Sebastian Carneiro, CEO & co-founder, Solas Capital, said: “We are pleased to deepen our partnership with the EIB, demonstrating how building decarbonisation infrastructure is a crucial pillar of the energy transition.

“Thanks to the €60m commitment from the EIB to SSEF II, we can unlock much needed infrastructure investments for energy efficiency projects—especially for SMEs—and build upon the strong relationships established by the predecessor fund, all the while contributing to European competitiveness and energy security.”

Paul Kearney, partner & co-founder, Solas Capital, said: “Structuring energy efficiency infrastructure investments requires deep sectoral expertise and trusted partnerships. Our long-term relationships with established project developers reflect years of learning how to transform energy service contracts into investable infrastructure assets.

“SSEF II builds on this proven model, and the EIB’s co-financing will enable us to channel even more institutional capital toward Europe’s building and industrial decarbonisation challenge.”

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