European Investment Fund plugs €200m into scaling biogas

The European Investment Fund (EIF), part of the EIB Group, has committed €200 million ($233 million) to Copenhagen Infrastructure Partners’ Advanced Bioenergy Fund II (ABF II), in a move aimed at accelerating biomethane and bioenergy deployment across Europe.

The fund will focus primarily on the development, construction and operation of industrial-scale biogas plants using anaerobic digestion technology.

These facilities will convert agricultural waste streams, including manure and other organic feedstocks, into biomethane to support decarbonisation efforts in sectors such as industry and maritime transport.

ABF II is expected to target projects across key European markets including Denmark, Ireland, Spain, Belgium and Finland.

According to EIF Deputy Chief Executive Merete Clausen, the investment reflects Europe’s increasing focus on renewable gases and energy resilience.

“By supporting the development of new biogas projects across Europe, we are helping increase domestic renewable energy production, strengthen energy security and accelerate the green transition,” Clausen said.

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The launch of ABF II builds on Copenhagen Infrastructure Partners’ (CIP) first Advanced Bioenergy Fund and marks a further step in scaling Europe’s biomethane infrastructure as the region seeks to reduce dependence on imported fossil fuels.

With a target size of €1.5 billion ($1.75 billion), the fund is expected to contribute significantly to Europe’s renewable energy capacity while supporting broader EU decarbonisation and energy security objectives. The initiative has attracted a mix of public and private capital, highlighting growing investor interest in advanced bioenergy technologies.

EIF said the fund benefits from an established pipeline of bioenergy projects that are ready for development, providing visibility on deployment timelines and capital allocation.

“We are very pleased to close the investment of €200 million with EIF,” said Thomas Dalsgaard, partner and head of the advanced bioenergy team at CIP. “We see strong market demand for the production of domestic biomethane across Europe and, with the Advanced Bioenergy Fund II and the existing portfolio of greenfield bioenergy projects, CIP is well positioned to deliver.”

Biomethane is seen as a key component of Europe’s energy transition strategy due to its compatibility with existing gas infrastructure and its potential to enhance energy security and strategic autonomy.