CIP Launches €1.5 Billion Bioenergy Fund
Energy infrastructure investment manager Copenhagen Infrastructure Partners (CIP) announced the launch of Advanced Bioenergy Fund II (ABF II), a new fund focused on scaling biomethane and advanced bioenergy production across Europe.
The new fund is launching with a €200 million (USD$232 million) commitment from the EIB Group’s European Investment Fund (EIF). CIP said that it has set a target size of €1.5 billion for ABF II, roughly twice the size of its predecessor fund, which closed in 2023.
Biomethane, or renewable natural gas (RNG), is expected to play a critical role in the transition to cleaner energy sources, particularly for sectors in which energy solutions such as wind or solar are less practical. Biomethane is produced from organic waste, such as agricultural, industrial, and household wastes, and is chemically identical to fossil-based natural gas, enabling it to support the decarbonization of hard-to-abate sectors such as road transport and heavy industry, without needing to replace existing transmission and distribution infrastructure.
According to CIP, ABF II will focus primarily on the development, construction and operation of new industrial-scale biogas plants using anaerobic digestion technology. The projects will convert feedstock such as manure and other agricultural waste into biomethane that can help decarbonize sectors including industry and maritime transport.
The strategy will primarily target greenfield projects in Denmark, Ireland, Spain, Belgium, and Finland.
Thomas Dalsgaard, Partner at CIP and Head of the Advanced Bioenergy Team said:
“We see strong market demand for the production of domestic biomethane across Europe and with the Advanced Bioenergy Fund II, and the existing portfolio of greenfield bioenergy projects, CIP is well positioned to deliver.”
The EIF said that the investment is backed by the European Union’s InvestEU and REPowerEU initiatives, supporting efforts to increase renewable energy production in Europe and reduce dependence on imported fossil fuels.
EIF Deputy Chief Executive Merete Clausen said:
“This investment reflects Europe’s growing focus on renewable gases and sustainable energy infrastructure. By supporting the development of new biogas projects across Europe, we are helping increase domestic renewable energy production, strengthen energy security and accelerate the green transition.”