Partners Group, a leading global private markets firm, has agreed, on behalf of its clients, to acquire a leading biogas and biomethane energy platform in Germany (“the Platform”), from Energiedenker Group.
The Platform operates a 60 MW portfolio of 35 biogas plants and 10 biomethane plants across northeast Germany. Biogas is produced through bacteria digesting feedstock, such as crops, food waste or agricultural waste, and can be used as clean fuel to generate electricity that is sold into the grid under the German EEG (Renewable Energy Sources Act), similar to other renewable power generation technologies. The carbon dioxide in biogas can also be filtered out to create biomethane, a separate substance that is sold as a full substitute to natural gas. The Platform has strong infrastructure characteristics and benefits from a large asset base with high barriers to entry, visible cash flows, and long-term contracts. The production of biogas and biomethane is a next-generation infrastructure theme in Europe that is experiencing multiple tailwinds, including regulatory support for clean energy sources, industrial decarbonization goals, and a heightened focus on energy independence. Within Europe, Germany has the largest biogas and biomethane markets, as well as ambitious production targets.
Following a rebrand, Partners Group will work with management on several value creation initiatives, including building out the Platform’s project pipeline, developing innovative ancillary service lines, and strengthening its contract management capabilities.
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