Frankfurt, 27th September 2022
- The Prime Green Energy Infrastructure Fund (“PGEIF”), managed by Prime Capital AG, has entered into two major agreements for the acquisition and construction of new Renewable Energy projects in Finland and Sweden
- A joint venture (“JV”) with CPC Finland has been established to develop a green hydrogen/e-methane plant with a capacity of up to 200MW close to Kristinestad, Finland, with construction scheduled to start in 2024. CPC Finland will provide 600MW of Renewable Energy projects to the JV
- Secondly, a cluster of three wind farms with a total capacity of 290MW in the municipality of Lycksele, Sweden, has been acquired from RES. Commissioning is scheduled for 2025. Part of the green electricity is planned to be used to power a green power-to-X (“PtX”) project in the region
- With these investments, PGEIF is already fully committed well before the end of its investment period, and fundraising for its successor fund PGEIF II is expected to start in the next weeks
Prime Capital, the independent asset manager and financial services provider based in Frankfurt, announces two major transactions entered into on behalf of its Prime Green Energy Infrastructure Fund (“PGEIF”).
A joint venture has been established with CPC Finland to develop a large green PtX plant in Kristinestad, Finland, whose electricity is expected to be provided by a 600MW Renewable Energy portfolio developed by the same developer. The permitting process for the PtX plant has already started and construction is expected to start in 2024, with commissioning scheduled for 2025. The supply of green energy supply to the PtX plant is therefore secured and will come from the joint venture’s own production resources, which are expected to cover at least 80% of the electricity demand. Prime Capital had worked with CPC Finland already in earlier projects in the past.
“The Nordic green hydrogen/power-to-X market has a significant market potential in light of increasing hydrogen and synthetic fuels demand in Europe, accelerated as a result of the Ukraine war. With our well-established presence in these markets, we have a strong potential to become a relevant player in this new wave in the European energy transition market,” says Dr Mathias Bimberg, Head of Infrastructure at Prime Capital AG.
In addition, the asset manager signed an agreement to acquire three wind farms with a total capacity of 290MW from the leading global renewable energy company RES, with whom it also has two other projects under construction. RES will provide development services and the transaction is expected to complete in the fourth quarter of this year. The cluster will contribute nearly 1 TWh per year of new green energy to the region and the European market. Part of the green electricity is planned to be used for a green PtX project in the region.
“We are pleased that with these two large transactions the capital commitments of PGEIF have now been fully allocated. We are very happy about the quick capital deployment. At the same time, we are building a strong pipeline for our next strategies that we intend to bring to the market in the near future”, adds Andreas Kalusche, CEO of Prime Capital AG.
The timing is well aligned with the pre-marketing of PGEIF II. With a target volume of EUR 1bn and the combination of Renewable Energy projects and energy transition assets the new fund will extend the value chain and generate higher returns while making a strong contribution to decarbonisation.
Prime Capital has already become one of the largest investors in the Nordics onshore wind market over the past few years and has recently been awarded the “Green Fund of the Year 2022” for its “Prime Green Energy Infrastructure Fund” at the Wind Investment Awards.
About Prime Capital:
Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure, including Renewable Energy and Private Debt. Furthermore, the company offers Access Solutions as well as Investment Advisory & Solutions. Prime Capital was founded in 2006, currently employs around 120 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of June 2022, Prime Capital has approximately EUR 4.3 bn Assets under Management as well as EUR 7.5 bn Assets under Administration.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, CEO
Questions regarding the content please contact Dr Mathias Bimberg
Tel: 0049 69 9686 984 308