German gas company VNG has sold half of its biogas subsidiary to a fund managed by CVC’s infrastructure business.
CVC DIF’s DIF Infrastructure VII fund is investing an undisclosed sum to acquire a 49% stake in biogas firm Balance Erneuerbare Energien to support its growth strategy.
Balance Erneuerbare currently operates a portfolio of 42 biogas plants across northern and eastern Germany, with a combined installed thermal capacity of around 197MW.
Ulf Heitmüller, CEO of VNG, said: “We are delighted to have gained a partner for Balance Erneuerbare in CVC DIF, a party that brings a wealth of expertise in supporting its financial investments on its growth path through active value creation. CVC DIF also shares our perspective on biogas as an energy source, the potential of Balance Erneuerbare, and values such as trust and transparency in our collaboration.”
Gijs Voskuyl, managing partner of CVC DIF, said: “The dynamics in the biogas market make it clear: Biogas is a key component in the decarbonisation of the energy industry. On the back of strong regulatory tailwinds, we want to actively support this development and see the partnership with VNG as offering a highly professional set-up and thus ideal conditions for Balance Erneuerbare as a platform in Germany to participate in market growth.
“We are convinced that Balance Erneuerbare is a high-quality investment that will provide our investors with stable returns and offer potential for long-term growth and sustainable value creation.”
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