Partners Group is buying a biogas platform in Germany in a bid to capitalise on a growing demand for clean alternative fuel sources.
The global private markets firm has agreed to acquire a 60MW portfolio of 35 biogas plants and 10 biomethane plants across northeast Germany from Energiedenker for an undisclosed sum.
Once the acquisition is complete, Partners Group will rebrand the platform and pursue value-creation initiatives, including building out the platform’s project pipeline and strengthening its contract management capabilities.
Partners Group said the platform had strong infrastructure characteristics and benefitted from a “large asset base with high barriers to entry, visible cash flows, and long-term contracts”.
It added that biogas and biomethane production in Europe is a “next-generation infrastructure theme” and is ”experiencing multiple tailwinds, including regulatory support for clean energy sources”, industrial decarbonisation goals, and a heightened focus on energy independence.
David Daum, managing director and co-head of private infrastructure Europe at 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, a member of management, private infrastructure Europe at Partners Group, said: “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.”
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