Luxembourg-headed environmental infrastructure investment firm PEARL Infrastructure Capital II SCA (PEARL), has announced that it has acquired a 65 percent stake in Norway-headed advanced black pellet producer Arbaflame AS.
Registered with the CSSF, PEARL Infrastructure Capital II SCA is a Luxembourg-law Reserved Alternative Investment Fund (RAIF) that is open for marketing and reserved for professional investors as defined by the MiFID Directive or those able to invest a regulatory minimum amount per applicable regulations in their marketing country.
It is a leading investor in environmental infrastructure projects across Europe and a member of the Edmond de Rothschild Private Equity partnership.
Arbaflame specializes in the production of black pellets – a next-generation solid biofuel that can replace coal in industrial applications and power generation.
PEARL’s majority share acquisition of Arbaflame marks a pivotal step toward decarbonizing a share of Europe’s coal market. In 2024, coal consumption in the European Union (EU) amounted to approximately 287 million tonnes.
The coal market remains substantial, with an estimated value of EUR 30 billion. By leveraging Arbaflame’s innovative black pellet technology, PEARL is strategically positioned to offer a sustainable alternative to traditional coal, supporting Europe’s transition toward renewable energy and reducing
reliance on fossil fuels.
Ramping up the rollout of Arba One
Arbaflame owns and operates the world’s first industrial-scale steam-treated black pellet production facility – Arba One.
Located in Norway, this breakthrough technology provides a sustainable and efficient solution for reducing carbon emissions and promoting a circular economy.
Under this new ownership structure, Arbaflame will continue to operate under its existing brand, while benefiting from PEARL’s resources to accelerate its expansion.
We are delighted to welcome Arbaflame to our group. Their cutting-edge technologies and expertise will help us accelerate our mission to advance the energy transition and strengthen our leadership in the renewable, dispatchable, and storable energy production infrastructure sector, said Guillaume de Forceville, Partner and Chief Operating Officer of PEARL.
Since its founding in 2005, Arbaflame has been supported by its majority shareholder PEMCO, which has played a pivotal role in the company’s growth. PEMCO will remain a 32 percent shareholder alongside PEARL, ensuring continued development momentum and leveraging its extensive industry experience.
PEARL’s involvement is an excellent opportunity to expand our operations across Europe. Their technical and financial support will allow us to continue innovating and advancing our unique, patented black pellet production technology, said Håkon Knappskog, CEO of Arbaflame and PEMCO.
