The European Investment Fund (EIF), a member of the European Investment Bank Group, has committed €200 million to Copenhagen Infrastructure Partners’ (CIP) Advanced Bioenergy Fund II (ABF II), aiming to scale industrial-scale biomethane and advanced bioenergy infrastructure across Europe.
Backed by the European Union’s InvestEU and REPowerEU initiatives, the investment supports efforts to expand domestic renewable energy production and reduce reliance on imported fossil fuels. ABF II targets a total fund size of EUR 1.5 billion, pooling public and private capital from institutional investors to help build an integrated capital market within the EU.
The fund will invest primarily in the development, construction, and operation of greenfield biogas plants using anaerobic digestion technology. These facilities will process feedstocks, such as manure and agricultural waste, into biomethane to help decarbonise hard-to-abate sectors including manufacturing and maritime transport. The investment strategy targets core European markets with supportive regulatory frameworks, focusing initially on projects in Denmark, Ireland, Spain, Belgium, and Finland.
EIF Deputy Chief Executive Merete Clausen noted the regional importance of the project, stating: “This investment reflects Europe’s growing focus on renewable gases and sustainable energy infrastructure. By supporting the development of new biogas projects across Europe, we are helping increase domestic renewable energy production, strengthen energy security and accelerate the green transition.”
As a direct substitute for natural gas, biomethane remains fully compatible with existing grid infrastructure, enhancing Europe’s energy security and strategic autonomy. The fund utilizes a pre-developed pipeline of new bioenergy projects, providing clear visibility for capital deployment and project timelines.
Thomas Dalsgaard, Partner at CIP and head of the advanced bioenergy team, welcomed the institutional backing, stating: “We are very pleased to close the investment of EUR 200 million with EIF. It is an important step for the Advanced Bioenergy Fund II on its path towards the EUR 1.5 billion target, and we very much look forward to the partnership with EIF. We see strong market demand for the production of domestic biomethane across Europe and with the Advanced Bioenergy Fund II, and the existing portfolio of greenfield bioenergy projects, CIP is well positioned to deliver.”
CIP manages more than EUR 37 billion in clean energy infrastructure capital, maintaining a global project footprint that spans over 30 countries.
