CIP makes its first investment in renewable natural gas

Copenhagen Infrastructure Partners (CIP), one of the largest offshore wind developers, has acquired biogas project Envo Biogas in Tønder, Denmark, from Canada-based clean energy producer Anaergia.

The plant was sold to CIP’s Advanced Bioenergy Fund I (CI ABF I), which is developing projects that produce green gas and green fuels from organic waste, contributing to the decarbonisation of the hard-to-abate sectors as well as the security of gas supply in Europe and North America.

While the financial terms of the transaction were not disclosed, the acquisition is said to mark the first investment in CI ABF I as well as CIP’s first investment in renewable natural gas (RNG).

Anaergia acquired the development project in 2021, finalised the development and injected the first biomethane into Danish pipelines on 15 November 2022.

Once the full capacity of the plant has been commissioned, which is expected by 2025, it will be one of the largest biogas plants in Europe, converting approximately 900,000 tons of green sustainable feedstock – agricultural and industrial organic waste – into approximately 1.4 million MMBtu (40 million Nm3) of renewable natural gas annually. The gas is injected into the existing natural gas grid, thus displacing fossil gas.

Additionally, the plant will produce biogenic CO2 that will be used at European Energy’s power-to-X facility under construction at the nearby Kassø facility, to produce e-methanol for container ships.

After harvesting the green energy the remaining organic material will be recirculated as nutrients (fertilizer) for agriculture production in the region.

“Having advanced the Envo Biogas Tønder project and adding substantial value, the timing is now right for Anaergia to divest of this facility and use the proceeds to advance other new and existing projects in Europe”, said Andrew Benedek, Chairman and CEO of Anaergia. “We look forward to helping Copenhagen Infrastructure Partners complete construction on this project and collaborating with them in the future.”

Thomas Dalsgaard, Partner in CIP, added: “We are very pleased to have made our first investment into a large-scale and modern biogas project in Denmark, creating not just green energy, but also jobs and investments in the local community. It was a great achievement by Anaergia to reach first gas in November 2022, and we look forward to working with local stakeholders, farmers and suppliers – and to continue the construction of the plant that once in full operations will make a significant contribution to the green transition in the municipality of Tønder and in Denmark.”