CIP's investment is made through its CI Advanced Bioenergy Fund I (CI ABF I), whose investors include several of the largest Danish pension funds. The investment into Sindal Biogas is well aligned with the investment strategy of CI ABF I, as Sindal utilises industrial and agricultural waste to produce green gas, thereby helping to solve multiple environmental challenges.
“At Copenhagen Infrastructure Partners, we look forward to working with the existing owners of Sindal Biogas to develop and operate what is intended to be one of Denmark's largest biogas plants” said Thomas Dalsgaard, Partner at CIP. “We see great potential in the conversion of sustainable biomass into green gas and green fuels, which play a crucial role in the green transition. The acquisition of the majority of the shares in Sindal Biogas represents an important step for our fund and portfolio of biogas projects. We look forward to further developing and finalising the plant with our partners so that we and the local community can create new jobs and contribute to the green transition.”
Sindal Biogas was founded in 2017 and has been expanded several times since. Currently, the plant is being expanded to process 500,000 tonnes of biomass annually with an intended production of upgraded biogas for the gas grid of up to 34 million cubic metres. In addition, the plant will produce biogenic CO2, which will be captured, stored and/or used in the green transition. As a result of the planned new triple-digit million investments, it is expected that the plant's production of upgraded biogas can displace up to 50,000 tonnes of fossil CO2 per year. The new investments into the plant will create growth and jobs in the local area, which continues to be an essential partner for the future development of the plant.
“Biogas is developing rapidly” added Morten Glenthøj, KK Invest. “Sindal Biogas will need major investments in coming years to utilise the technological opportunities and increase CO2 displacement. This requires long-term, risk-taking capital with regulatory insight into the green transition. In CIP, we have found a solid partner who shares our vision. It has also been crucial for us that CIP is backed by pension funds, which means that many citizens in the region will indirectly become co-owners of a local part of the green transition and join us on a continued journey of growth. We are proud of what our talented employees have created, and therefore, equally proud to have CIP on board to ensure continued growth with local commitment.”
CIP has a fundamental belief that bioenergy projects must be anchored locally. Therefore, it has been crucial that the current owners continue in the project so that the relationship with the local community and local ownership is maintained. The partnership with the existing owners also represents the first step in the joint further development of large-scale biogas projects.
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