Foresight Group is investing in geothermal energy in the Netherlands through its energy-transition fund.
Foresight Energy Infrastructure Partners (FEIP), which raised more than €850m earlier this year, has entered into a joint venture with geothermal specialist 85 Degrees Renewable to acquire operational wells and construction projects.
Geothermal heat energy has been identified by the Dutch government as part of its strategy to reduce emissions and Foresight said the investment would support local areas by providing heat to local farmers and residents at competitive prices.
It is the fifth investment by FEIP and the first in geothermal energy – to date the fund has invested in wind and energy-from-waste assets.
FEIP’s investment strategy is designed to achieve specific decarbonisation objectives in line with the EU Green Taxonomy and Paris Climate Agreement. It aligns with the UN’s sustainable development goals, in particular with respect to affordable and clean energy, industry, innovation and infrastructure, and climate action.
Richard Thompson, co-manager of FEIP and Foresight partner, said: “This is a very exciting development for FEIP. The partnership with 85 Degrees paves the way for future expansion across a sector which we see as having considerable investment potential.”
Founded by Bart Duijndam, Greg Thain and Maarten Bruggink, 85 Degrees has expertise in geothermal development and the wider drilling and pipeline sector.
Thain, co-founder and director of 85 Degrees, said: “Having Foresight involved perfectly complements our local knowledge of geothermal markets in northern Europe.
“We are excited to be in a position to deliver urgently needed CO2 reductions in the shortest possible time. We feel that our efforts can make a significant contribution to delivering streamlined, fast-track, CO2 reductions.”