CVE raises €30M from Swen Capital Partners

CVE has raised €30M from SWEN Capital Partners. These funds will be mainly used to finance the growth of CVE Biogaz, a subsidiary spun off at the time of this deal. CVE’s ambition today is to become the first independent player in renewable gas in France to be based on a local methanation model, and to have a 10% share of France’s biogas market by 2030. The deal takes place against the backdrop of strong development in methanation, which allows producers of biowaste to meet their future obligations: from 2024, national law will indeed require them to sort all their biowaste at the source and reuse it.

Speeding up the development of the Biogas business

CVE, a French independent renewable energy producer, has raised 30 M€ from SWEN Capital Partners. This French asset manager, experienced in the field of methanation, is a leading player in responsible investment in non-listed assets. The funds raised will be used primarily to accelerate the development of CVE’s biogas business, which was recently spun off as a subsidiary.

With CVE Biogaz, the group aims to become the first independent player in renewable gas in France to be based on a local methanation model. The CVE group is already well-established in this market: today, CVE Biogaz has 6 units in operation or under construction and 23 projects under development, representing 647 GWh/year in energy production.

Its goal by 2030: increase its energy production to approximately 1.5 TWh/year and its revenue to €180 million. This will enable it to hold a 10% share of the French biogas market defined by the PPE (national Multiannual Energy Plan), and nearly 20% of the local methanation market.

Improve the competitiveness of methanation units and strengthen local networks

To achieve this objective, CVE Biogaz intends to improve the competitiveness of its units, by strengthening its upstream and downstream integration on the value chain and by diversifying its sources of income through new practices.

CVE’s biogas subsidiary will install new deconditioning equipment, to increase bio-waste treatment and recovery capabilities in the regions. It also intends to optimize the conditions for returning the digestate, a natural organic fertilizer produced by the methanation process, to the soil. Finally, CVE Biogaz intends to develop new uses with the recovery of BioCO₂ (co-product of biomethane which represents 40% of the biogas resulting from methanation) for the industrial sector in particular, as well as the decarbonized mobility with the production and the distribution of NGV/BioNGV (Natural Biogas for Vehicles)

This development is taking place against the backdrop of strong growth in methanation in France, with the need, under the new 2020 PPE plan, to optimize the costs and performance of methanation units and to organize an innovation ecosystem around green gas.

To provide a response to the challenges of the territories in terms of waste management

The new methanation projects are supported by subnational governments, which are using this technology to address the local issues of waste management, climate change, and job creation. It allows producers of biowaste to meet their future obligations: beginning in 2024, the law will require them to sort all of their biowaste at source to promote the return of organic matter to the soil after prior treatment through methanation or composting. Beyond the French market, CVE Biogaz also intends to capitalize on its experience to pursue its development in other countries, and thus to be among a European leader in the sector with an international presence.

« We are very pleased that SWEN Capital Partners has acquired a stake in CVE Biogaz, a business with considerable expertise in methanation », said Pierre de Froidefond, co-chairman of CVE with Hervé Lucas. « This fundraising will allow us to speed up in the biogas market. By expanding the number of medium-sized methanation units, we want to develop local networks that will generate benefits for the community. We are going to internalize more upstream and downstream activities, to offer waste recovery services to industry and organic fertilization services to farmers, without any middlemen. We also want to participate in the emergence of an ecosystem around the new uses of green gases with and for local governments ».

A leading player in responsible investment in non-listed companies, SWEN Capital Partners represents more than €6.2 billion in assets under management and/or advisement in Europe (1).

« We are very enthusiastic about the idea of supporting CVE Biogaz in its development, during an energy transition where biomethane is playing a key role and is one of the pillars of the European strategy », added Olivier Aubert, Managing Director at SWEN Capital Partners. « This transaction is fully in line with the strategy of SWEN Impact Fund for Transition managed by SWEN Capital Partners and dedicated to investing in renewable gas projects. »

As a result of this deal, CVE Biogaz will be co-owned by the CVE Group and SWEN Capital Partners through its Impact Fund for Transition strategy. CVE will continue to hold the majority of the equity and voting rights of CVE Biogaz.

1. Calculated in terms of cumulative commitments