EXIT: BaltCap Infrastructure Fund signs agreement to sell biomass CHP in Riga to Northern European district heating company Gren
BaltCap Infrastructure Fund (BInF) has signed an agreement to sell Energia Verde, a company that operates a biomass combined heat and power plant (CHP) in the Riga region, to Gren, the Northern European green energy company. The transaction is subject to customary closing conditions.
BInF acquired the majority of Energia Verde in 2018, roughly one year after the power plant started its operations. The woodchip-fired CHP plant is equipped with 18 MW HoSt Bio-Energy Installations high-pressure water tube steam boiler and a 3.98 MW steam turbine. The plant produces electricity and provides heat to the Riga district heating system.
“Over the last three years, Energia Verde has been the cheapest heat producer in the Riga district heating system. This was an extremely important factor of our social responsibility agenda in addition to the environmental impact that the asset has on CO2 emissions. The affordability of Energia Verde's heat production is among others thanks to the continued regulatory support around the renewables sector, in particular institutionally owned combined heat and power generation,” says Šarūnas Stepukonis, partner at BaltCap Infrastructure Fund.
Gren focuses on developing and providing sustainable energy solutions, primarily district heating, using renewables and local resources to meet local communities' needs and provides comfort for their daily lives while also having a positive impact on the environment. The acquisition of Energia Verde is part of Gren's strategy to grow through new greenfield projects and targeted strategic acquisitions. Other transformational initiatives will include extending Gren's heating networks to develop new heating and cooling solutions for industrial and commercial customers.
Company profiles
Gren / www.gren.com
Gren, the Northern European green energy company, focuses on developing and providing sustainable energy solutions, primarily district heating, to meet its local communities' needs in their daily lives while having a positive impact on the environment. Gren was relaunched by Partners Group, a leading global private markets firm, acting on behalf of its clients, after acquiring Fortum’s heating & cooling businesses in the Baltic countries in 2021.
Partners Group / www.partnersgroup.com
Partners Group is a leading global private markets firm. Since 1996, the firm has invested over USD 145 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally. Partners Group seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns with lasting, positive impact for all its stakeholders. With over USD 109 billion in assets under management as of 31 December 2020, Partners Group provides an innovative range of bespoke client solutions to institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit and follow us on LinkedIn or Twitter.
BaltCap / www.baltcap.com
BaltCap is the largest private equity firm in the Baltics focusing on buy-out, growth capital, venture capital and infrastructure investments. BaltCap has a strong presence in all three Baltic countries, Finland, Sweden and Poland with local offices and an experienced team. Since 1995, BaltCap has been managing several generations of private equity funds with total capital of over EUR 700 million and has completed about 100 platform investments. BaltCap launched BaltCap Infrastructure Fund (BInF) in July 2017.
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Photo credit: BaltCap; Barna Bartis