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PensionDanmark to invest 100 mln euro in advanced bioenergy with CIP

Denmark’s largest labour-market pension fund is among the investors in new green fuel strategy fund that has reached first close.

A new generation of green fuels is needed to ensure a sustainable transition of the global energy and transportation system. And with a new investment of 100 million euros in the CI Advanced Bioenergy Fund I (CI ABF I), PensionDanmark is committing to provide funding to the pivotal process.

“Advanced biofuels will provide a strong impact for the green transition of the transportation sector and will furthermore support an even faster independence from Russian natural gas,” says Torben Möger Pedersen, CEO at PensionDanmark.

CI ABF I is managed by Copenhagen Infrastructure Partners (CIP) and the fund will focus on equity investments in advanced bioenergy infrastructure in Europe and North America.

Investments will comply with the EU SFDR regulation Article 9 and be based on sustainable feedstock such as waste wood, agricultural biowaste, and household and industrial biowaste.

The offtake products will include green gas and green fuels, such as renewable natural gas (RNG), liquified natural gas (bio-LNG), and 2nd generation bioethanol.

CIP has secured the fund an attractive portfolio of development stage advanced bioenergy projects in Europe with diverse exposure to feedstock, production technologies, and offtake markets.

“CIP has a strong record of delivering strong investment returns as well as strong climate impact and the investment fits well with PensionDanmark´s strategy of delivering attractive returns to our members while delivering a real impact on the green transition,” says Torben Möger Pedersen.

CI ABF I reached first closing at 375 million euros on April 21. Besides PensionDanmark, the fund has received capital commitments from Industriens Pension, Andra AP-fonden, and Fjärde AP-fonden. The target fund size is 1 billion euros.

Since 2012, PensionDanmark has invested more than 3 billion euros with CIP.

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