APG, on behalf of pension fund client ABP, has expanded its investment in bioenergy platform BioticNRG. In addition to increasing its commitment to BioticNRG's UK operations, APG and investment manager Palisade Real Assets have extended the mandate to include European bioenergy assets.
APG first committed capital to BioticNRG in 2024. Since then, the platform has built a portfolio of anaerobic digestion plants, green waste composting facilities and related infrastructure in the UK. The expanded mandate will enable BioticNRG to pursue further opportunities in Europe.
The first investment under this expanded mandate is the acquisition of Lemvig Biogas in Denmark. Lemvig Biogas, located in western Denmark, has been operating since 1992 and is one of Denmark's longest-established industrial-scale biogas facilities. Today the plant processes manure and organic waste streams to produce renewable energy for the local community. BioticNRG plans to invest in upgrading the facility to produce biomethane for injection into the Danish gas grid, supporting the decarbonisation of gas supply while increasing renewable gas production from locally sourced waste streams.
According to Iulia Grosu, Senior Portfolio Manager Infrastructure at APG, investments in biogas and biomethane can contribute to reducing greenhouse gas emissions, making productive use of waste streams and strengthening Europe's energy independence. At the same time, they offer the potential for attractive long-term returns for ABP's participants.
The acquisition of Lemvig Biogas marks BioticNRG's first investment in continental Europe and reflects APG's continued focus, on behalf of ABP, on investment opportunities that support the energy transition while aiming to deliver attractive long-term returns.