CIP’s Advanced Bioenergy Fund reaches first close with EUR 375 million in commitments

Copenhagen Infrastructure Partners (CIP) reaches EUR 375 million first close on its new mid cap green fuel strategy, CI Advanced Bioenergy Fund I (CI ABF I), with a target fund size of EUR 1 billion.

The fund will focus on equity investments in advanced bioenergy infrastructure in Europe and North America. It enables institutional investors to contribute to the energy transition and participate in the decarbonization of hard to abate sectors through the production of advanced biofuels and biogas – while delivering cost efficient and circular solutions for environmental and organic waste challenges. Investments will be dark green (as defined in the EU regulation Article 9) based on sustainable feedstock such as waste wood, agricultural biowaste, and household and industrial biowaste. The offtake products will include green gas and green fuels, such as renewable natural gas (RNG), liquified natural gas (bio-LNG), and 2nd generation bioethanol.

We are very excited about the establishment of our new advanced bioenergy strategy which taps into an attractive market opportunity underpinned by major themes such as the climate agenda, circular economy, and energy independence. Obtaining first close commitments of EUR 375 million from some of our large existing investors is an important proof of investor confidence and a testament to our track record.”, says Jakob Baruël Poulsen, Managing Partner in CIP.

Thomas Dalsgaard, Partner in CIP and head of the advanced bioenergy team, says: “There is a very strong market demand for green fuels and circular solutions provided by this investment strategy, underpinned by robust regulatory drivers both in the EU and the US.” He continues: “As the global market leader in greenfield renewable infrastructure investments and with a team that has significant experience in feedstock sourcing, CIP is uniquely positioned to invest in this segment.”

Prior to first close of CI ABF I, CIP has secured the fund an attractive portfolio of development stage advanced bioenergy projects in Europe with diverse exposure to feedstock, production technologies, and offtake markets.

CI ABF I will apply the same and proven value creation and de-risking approach as CIP’s existing funds, i.e. the fund will engage with infrastructure projects prior to start of construction and apply CIP’s industrial skills to optimize and de-risk projects and investments through among others project design, partner selection, and contracting. Once de-risked, the projects are expected to have core infrastructure characteristics including long term offtake contracts.

The new fund reached a first close of EUR 375 million on April 21, 2022 with capital commitments from four large institutional investors from Denmark (PensionDanmark and Industriens Pension) and Sweden (Andra AP-fonden and Fjärde AP-fonden). Vestas and CIP have also committed to the fund.

Advanced biofuels will provide a strong impact for the green transition of the transportation sector and will furthermore support an even faster independence from Russian natural gas. CIP has a strong record of delivering strong investment returns as well as strong climate impact and the investment fits well with PensionDanmark’s strategy of delivering attractive returns to our members while delivering a real impact on the green transition.”, says Torben Möger Pedersen, CEO at PensionDanmark.

There is no doubt that there are really great prospects in an efficient conversion of organic waste to green gas and green fuel. This is the first specialized fund in the field, and we have great confidence that the highly competent people in CIP can find good and visionary projects. At the same time, the investment fits in very well with our strategic focus on investments in renewable energy and green energy infrastructure.”, says Jan Østergaard, Head of Real Assets at Industriens Pension.

We are very excited about our investment in CIP’s Advanced Bioenergy Fund, since it addresses the immediate demand for green fuels and speeds up circular solutions. It’s our third investment with CIP who we find to be very visionary, professional and experienced.”, says Helena Olin, Head of Real Assets at Andra AP-fonden (AP2).

We believe that a more circular approach to the handling of waste brings very tangible environmental and climate benefits and that the fund’s strategy in the sector at the same time provides an exciting set of investment opportunities. CI ABF I therefore presents an attractive way for AP4 to participate in this crucial piece of the transition to a more sustainable society, which is a highly prioritized investment theme for us. We are happy to share this vision with our fellow institutional partners in the fund and to further develop our existing partnership with CIP through our investment.”, says Andreas Jensen, Senior Portfolio Manager at Fjärde AP-fonden (AP4).

Law firm Plesner acts as legal counsel. Marketing is carried out without the involvement of placement agents.

About Copenhagen Infrastructure Partners
Copenhagen Infrastructure Partners P/S is the world’s largest dedicated fund manager within greenfield renewable energy investments, and a leader in offshore wind globally. At COP26 CIP announced the ambition and a roadmap for increasing and accelerating its role in delivering on the energy transition by deploying EUR 100bn into green energy investments by 2030.

CIP manages ten funds and has approx. EUR 18 billion of assets under management focused on investments in energy infrastructure, including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, reserve capacity and storage, and other energy assets like Power-to-X and advanced bioenergy. Today CIP’s funds have approximately 120 international institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and North America and multilateral organizations e.g. EIB. CIP has approximately 300 employees and offices in Copenhagen, London, Hamburg, Utrecht, New York, Tokyo, Singapore and Melbourne. For more information on CIP, visit www.cip.dk

For further information, please contact:

Copenhagen Infrastructure Partners, Kelly Bork, Phone: +45 7070 5151, Email: ir@cip.dk