Copenhagen Infrastructure Partners Closes $2.1 Billion Biofuels, Renewable Energy Funds – GWC Mag

Copenhagen Infrastructure Partners has closed on two new funds, with a combined total of $2.1 billion, that will go toward biofuels and renewable energy.

The two new funds include CI Advanced Bioenergy Fund I (CI ABF I), valued at about $798 million, and CI Green Credit Fund I (CI GCF I), valued at about $1.06 million with nearly $213 million co-investments to date.

The financing, along with the first close for its flagship fund, CI V, at $5.96 billion, reportedly makes 2023 a record year for the company.

Advanced Bioenergy Funding to Produce Clean Fuels from Biowaste

The Advanced Bioenergy Fund will contribute to producing clean fuels, including renewable natural gas made from food waste, agricultural residues, and other organic waste. Investments will largely be directed towards advancing bioenergy infrastructure, primarily in Europe.

Funded projects will aim to decarbonize hard-to-abate sectors by producing biofuels and biogas that may replace fossil fuels, while also allowing for circularity for feedstocks such as waste wood and industrial biowaste that would otherwise go to landfills.

“We are pleased to welcome the new investors in CI ABF I and are delighted that investors generally share our confidence in the market for advanced bioenergy projects,” said Thomas Dalsgaard, partner in the Advanced Bioenergy Fund. “There is a very strong market demand for green gas and green fuels and circular solutions which is provided by CI ABF I’s investment strategy and underpinned by robust regulatory drivers both in the EU and the U.S. We have a strong pipeline of projects in these markets that we look forward to progressing even further.”

The fund has already taken a final investment decision in order to start construction on industrial-scale advanced bioenergy projects in Denmark, the Netherlands, and Spain, where renewable natural gas and biogenic carbon will be produced.

Green Credit Fund Supports Renewable Energy Infrastructure Projects

The Green Credit Fund will provide debt financing with subordinated risk characteristics for renewable energy projects around the world, including in Europe, North America, and the Asia-Pacific region.

The main focus of the fund will be on direct investments in green and brownfield projects in renewable energy infrastructure. Greenfield projects involve the company building its own facilities from the ground up, while in brownfield projects, the company will purchase or lease an existing facility.

Both funds received investors mainly from institutional investors, pension funds, life insurance companies, sovereign wealth funds, family offices, asset managers, and corporate investors.