Dutch APG invests in UK-focused bioenergy fund
Dutch investor APG, on behalf of its pension fund client ABP, has signed an initial capital commitment to UK-based bioenergy asset aggregator BioticNRG, it announced on June 14.
BioticNRG aggregates bioenergy infrastructure assets to build a comprehensive bioenergy enterprise. With this investment, APG aims to enhance the company’s capacity to create value, develop a sustainable bioenergy platform, and deploy its decarbonisation expertise across challenging sectors such as transport, waste, energy, and agriculture.
The investment is managed through external asset manager Palisade Real Assets, which has announced several transactions supporting the growth of BioticNRG. Following APG's commitment, Palisade signed parallel acquisitions of AD Aggregator Platform (ADAP) and Material Change (MCL). These acquisitions build on BioticNRG's establishment over the past two years, expanding its footprint in the UK's organics and bioenergy sector. APG did not provide the financial details of the deal.
“Investing in biogas and biomethane offers a promising solution to mitigate climate change, reduce waste, and provide renewable energy solutions,” said Iulia Grosu, APG’s senior portfolio manager for infrastructure. “We have been working with the Palisade Real Assets team to establish BioticNRG and ensure it aligns with ABP’s goals of investing in the energy transition while securing attractive returns for its participants.”
Grosu further added, “Their subsequent acquisition of ADAP and MCL brings the expertise and commitment which will underpin our long-term vision for sustainability.”
BioticNRG’s seed asset is Malaby Biogas, upon which it is building a pipeline of operating anaerobic digestion facilities and associated biogas and bifertiliser operations. Malaby Biogas processes food wastes from a wide variety of sources, including supermarket waste, local restaurants, farms, and food-related businesses, as well as waste from various food manufacturing and processing sites.