EU fund backs French biogas

EU infrastructure fund Marguerite II has acquired a majority stake in French biogas developer Keon.

Marguerite II is a €705mn ($796mn) fund set up by the European Investment Bank and various national EU financiers to invest in renewables, energy and infrastructure. It acquired the majority interest in Keon from a pool of funds managed by Generis Capital Partners, Citizen Capital, Supernova Invest and Sigma Gestion.

"As part of the transaction, Marguerite II will fund Keon’s investment plan with the goal of growing its portfolio of biomethane projects in France and abroad as well as supporting its strategy to become a major integrated renewable gas producer," the EU fund said on January 20.

Keon consists of three divisions: Naskeo Environment, which designs and builds biogas plants; Sycomore, which is focused on operation and maintenance; and Ter'Green, which manages development and investment. Naskeo, founded in 2005, has constructed over 60 biogas plants, making it a major player on the French market for the fuel.

"Electricity represents less than 30% of the final energy consumption in France," Marguerite II partner Guillaume Rivron said in a statement. "Green gas will, therefore, have to play a role in the decarbonisation of the economy, complementing renewables' uptake."

Keon's founders and other management - Aurelien Lugardon, Marc Bauzet, and Philippe Spannagel - will remain shareholders in the company.