EIF Commits €200M to Expand Biomethane and Green Energy Projects Across Europe

The projects will primarily use anaerobic digestion technology, a process that converts organic waste materials such as manure and agricultural residues into renewable biomethane.

The European Investment Fund (EIF), part of the European Investment Bank (EIB) Group, has announced a major €200 million investment in Copenhagen Infrastructure Partners' Advanced Bioenergy Fund II (ABF II) to accelerate the development of biomethane and advanced bioenergy projects across Europe.

The investment is aimed at supporting Europe's transition toward cleaner energy, strengthening energy security, and reducing dependence on imported fossil fuels as the continent continues expanding renewable energy infrastructure.

Copenhagen Infrastructure Partners (CIP), one of the world's largest fund managers focused exclusively on clean energy infrastructure, will use the funding to support the development, construction, and operation of large-scale biogas plants across several European countries.

The projects will primarily use anaerobic digestion technology, a process that converts organic waste materials such as manure and agricultural residues into renewable biomethane.

Biomethane is increasingly viewed as a critical component of Europe's long-term energy strategy because it can be integrated directly into existing gas infrastructure while helping reduce greenhouse gas emissions.

The new fund will focus mainly on greenfield bioenergy projects in countries including:

• Denmark

• Ireland

• Spain

• Belgium

• Finland

These projects are expected to help decarbonise hard-to-abate sectors such as industry, heavy transport, shipping, and maritime operations.

EIF Deputy Chief Executive Merete Clausen said the investment reflects Europe's growing commitment to renewable gases and sustainable energy systems.

"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.

The launch of Advanced Bioenergy Fund II follows the success of the original Advanced Bioenergy Fund I (ABF I) and represents the next phase in scaling up Europe's bioenergy and biomethane production capacity.

The new fund has a target size of €1.5 billion, making it one of the most significant investment platforms dedicated to advanced bioenergy infrastructure in Europe.

Officials say the fund is expected to make a substantial contribution toward increasing renewable energy generation while supporting the European Union's climate and energy independence goals.

The initiative comes amid heightened European efforts to diversify energy supplies following geopolitical instability and growing concerns over reliance on imported fossil fuels.

Biomethane has become increasingly important within the EU's energy transition plans because it can replace conventional natural gas while using existing pipeline and distribution infrastructure.

Experts also note that biomethane production supports circular economy principles by converting agricultural waste and organic by-products into renewable energy rather than allowing them to contribute to methane emissions.

The fund has reportedly attracted strong interest from both public and private institutional investors, reflecting rising confidence in advanced bioenergy as a commercially viable renewable energy sector.

Officials say the investment also supports broader EU ambitions to build a stronger and more integrated European capital market capable of financing large-scale sustainable infrastructure projects.

One of the advantages of the fund is its already established pipeline of bioenergy projects that are prepared for development, providing investors with greater certainty regarding how and when capital will be deployed.

The projects are expected to operate within European markets supported by relatively stable regulatory frameworks and long-term renewable energy policies at both national and EU levels.

CIP Partner and Head of the Advanced Bioenergy Team Thomas Dalsgaard welcomed the EIF investment as a major milestone for the fund.

"We are very pleased to secure this €200 million investment from EIF. It is an important step toward reaching the fund's €1.5 billion target," Dalsgaard said.

He added that demand for domestically produced biomethane is growing strongly across Europe, positioning CIP to play a major role in expanding renewable gas production.

Copenhagen Infrastructure Partners currently manages more than €37 billion in assets and operates clean energy projects in over 30 countries worldwide, making it one of the leading global investors in renewable energy infrastructure.

The EIF investment is backed through the European Union's InvestEU and REPowerEU programmes.

These initiatives were established to accelerate renewable energy development, improve energy resilience, and reduce Europe's dependence on imported fossil fuels, particularly following recent global energy market disruptions.

Energy analysts say investments in biomethane infrastructure could become increasingly important as Europe works toward achieving climate neutrality while ensuring stable and affordable energy supplies.

In addition to reducing emissions, biomethane projects are also expected to provide economic benefits for rural communities by creating demand for agricultural waste products, supporting local supply chains, and generating employment opportunities in renewable energy sectors.

As Europe continues accelerating its clean energy transition, advanced bioenergy is increasingly being recognised as a key complement to solar, wind, hydrogen, and electrification technologies in building a diversified and resilient low-carbon energy system.