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CIP, KK Invest, DBC to develop Sindal Biogas

CIP, KK Invest, DBC to develop Sindal Biogas
Sindal Biogas to see triple-digit DKK million investments to become a flagship biogas and bioenergy plant in Denmark (photo courtesy Sindal Biogas).

In Denmark, KK Invest, DBC Invest, and Copenhagen Infrastructure Partners P/S (CIP) have reached an agreement whereby CIP acquires the majority share of Sindal Biogas, a biogas plant in Hjørring in North Jutland. The ambition is to develop Sindal Biogas into a flagship bioenergy plant and contribute positively to the green transition in Hjørring Municipality.

Copenhagen Infrastructure Partners (CIP) and the plant’s current owners will invest in the ongoing expansion of the sustainable bioenergy sector in Hjørring. The current owners of Sindal Biogas include a local investment company with roots in agriculture, KK Invest, owned by the Glenthøj Kirketerp family, and DBC Invest, a sister company to biomethane trader Danish Bio Commodities (DBC).

The aim is to jointly develop, expand, and operate the existing biogas plant as a continued hub for sustainable bioenergy in Northern Jutland. CIP’s investment the value of which has not been disclosed, is made through its CI Advanced Bioenergy Fund I (CI ABF I), whose investors include several of the largest Danish pension funds.

According to CIP, the investment into Sindal Biogas is well aligned with the investment strategy of CI ABF I, as Sindal Biogas utilizes industrial and agricultural waste to produce green gas, thereby helping to solve multiple environmental challenges.

At Copenhagen Infrastructure Partners, we look forward to working with the existing owners of Sindal Biogas to develop and operate what is intended to be one of Denmark’s largest biogas plants. We see great potential in the conversion of sustainable biomass into green gas and green fuels, which play a crucial role in the green transition. The acquisition of the majority of the shares in Sindal Biogas represents an important step for our fund and portfolio of biogas projects. We look forward to further developing and finalizing the plant with our partners so that we and the local community can create new jobs and contribute to the green transition, said Thomas Dalsgaard, Partner at CIP.

Produce RNG and capture biogenic CO2

Sindal Biogas was founded in 2017 and has been expanded several times since. Currently, the plant is being expanded to process 500,000 tonnes of biomass annually with an intended annual production of up to 34 million Nm3 of biomethane aka renewable natural gas (RNG), for the gas grid.

In addition, the plant will produce biogenic carbon dioxide (CO2), which will be captured, stored and/or used (CCUS) in the green transition. The new planned triple-digit DKK million investments into the plant will create growth and jobs in the local area, which continues to be an essential partner for the future development of the plant.

Biogas is developing rapidly. Sindal Biogas will need major investments in the coming years to utilize the technological opportunities and increase CO2 displacement. This requires long-term, risk-taking capital with regulatory insight into the green transition. In CIP, we have found a solid partner who shares our vision. It has also been crucial for us that CIP is backed by pension funds, which means that many citizens in the region will indirectly become co-owners of a local part of the green transition and join us on a continued journey of growth. We are proud of what our talented employees have created, and therefore, equally proud to have CIP on board to ensure continued growth with local commitment, said Morten Glenthøj, KK Invest.

Local ownership fundamental

CIP has a fundamental belief that bioenergy projects must be anchored locally. Therefore, it has been crucial that the current owners continue in the project so the relationship with the local community and local ownership is maintained.

The partnership with the existing owners also represents the first step in the joint further development of large-scale biogas projects.

DBC has been co-owners of Sindal Biogas for almost four years, and we have been happy to be part of the growth and development of the biogas plant together with Karen Kirketerp and Morten Glenthøj and the plant’s daily management team. The biogas plant has a lot of very capital-intensive development opportunities ahead, and it has therefore been natural for DBC to reduce our ownership share. We see CIP as the obvious partner for the future journey, said Rune Ledgaard Sørensen, CEO at DBC Invest.

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