MAPFRE's biomethane fund secures €15mn funding from Spanish lender

The MAPFRE Energías Renovables II fund, launched by Spanish insurer MAPFRE in collaboration with IAM Carbonzero to invest in biomethane projects across Europe, has secured €15mn ($16.1mn) in funding from the state-backed Official Credit Institute (ICO), ICO announced on May 9.

ICO will provide the €15mn investment through its specialised private equity investment arm, AXIS. This investment is facilitated through Fond-ICO Sustainability and Infrastructure, a vehicle aimed at promoting investment in infrastructure projects focused on sustainable mobility, renewable energy, and circular economy initiatives.

Since its inception, the MAPFRE Energías Renovables II fund has been developing nine biomethane plants in the regions of Extremadura, Castile and Leon, and Madrid. These projects are slated to enter the construction phase in the last quarter of this year and early 2025, with operations expected to commence throughout 2025. Additionally, IAM Carbonzero has identified 20 projects in various stages of origination across regions such as Andalusia, Aragon, Catalonia, Castile La Mancha, Murcia, and Galicia.

MAPFRE aims to raise up to €100mn in the initial phase to support the construction and development of between 20 and 25 biomethane plants in Spain over the next five years.