Investment company Frog Capital is selling its stake in agri.capital, a developer of biogas energy, to Alinda Capital Partners, the world’s largest independent infrastructure firm. As well as purchasing shares from existing shareholders, Alinda will invest €300m in agri.capital over the next three years, to support planned business growth.
Based in Munster, Germany, agri.capital has grown from inception in 2004 to become Europe’s largest biogas producer, using the product of the natural biological decomposition of organic matter, or biomass, derived from energy crops and agricultural waste. The company currently has over 60 production facilities in operation or under construction, capable of collectively producing 400 gigawatt hours of electricity per year. The company has significant expansion opportunities in Germany and Italy and sees additional growth opportunities in other European countries. Agri employs 130 people and generates revenues averaging €1m–€2m per annum from each plant. Frog Capital invested in agri.capital in 2010, as part of a 2009 €60m round of funding.
Commenting on Frog’s exit from agri.capital, Frog Partner Iyad Omari said: “We are delighted with the progress agri.capital has made and believe this landmark investment from Alinda will help leverage the considerable momentum and potential the company has to build on its leadership position in the biogas sector.”
“Alinda’s commitment to agri.capital will provide the growth equity capital required to realise the full potential of our business,” said agri.capital’s CEO, Dr. Anton Daubner. “Biogas is unique among renewable energy sources in being reliable, storable, and transportable, with applications for electricity, heating, and transport. We believe biogas and biomethane will be critical to Europe’s reaching its renewable energy and greenhouse gas reduction targets for 2020 and beyond.”
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