CapMan Infra Invests in ProPellet to Drive Growth and Sustainability in Finland’s Bioenergy Sector

CapMan Infra Invests in ProPellet to Drive Growth and Sustainability in Finland’s Bioenergy Sector

(IN BRIEF) CapMan Nordic Infrastructure II fund has acquired a majority stake in ProPellet Oy, Finland’s leading heat-as-a-service (HaaS) operator and bioenergy producer. ProPellet, which operates over 120 heating sites and produces pellet fuel using forestry by-products, has experienced significant growth driven by the shift from oil-based heating to biofuels. With CapMan Infra’s support, the company aims to expand its HaaS offerings, explore new energy technologies, and further promote the green transition in the heating sector. The deal, pending regulatory approval, aligns with CapMan’s sustainability-focused strategy under its Article 8 fund.

(PRESS RELEASE) HELSINKI, 19-Nov-2024 — /EuropaWire/ — CapMan Nordic Infrastructure II fund has announced a strategic investment in ProPellet Oy, a Finnish pioneer in heat-as-a-service (HaaS) operations and bioenergy production. The fund will acquire a majority stake in ProPellet, with the company’s key personnel retaining minority ownership. This partnership aims to fuel the company’s expansion into new markets and energy technologies while enhancing its heating service offerings.

Advancing Finland’s Green Transition

Founded in 2006, ProPellet is a leader in Finland’s transition to sustainable heating solutions, employing approximately 25 people. The company operates over 120 property-specific heating sites across Finland and manages pellet production facilities in Ylivieska and Tervola. These facilities use by-products from forestry and sawmills, supporting a circular economy approach. ProPellet has experienced significant growth as customers increasingly shift from oil-based heating to biofuels.

“This investment reflects our confidence in ProPellet’s growth potential,” said Pekko Haaksluoto, Partner at CapMan Infra. “We look forward to supporting the development of its heating services while driving expansion into innovative energy technologies.”

Strengthening Customer-Centric Energy Solutions

The partnership will provide ProPellet with enhanced resources and expertise to scale its operations and develop cutting-edge energy solutions.

“With CapMan Infra’s support, we are well-positioned to better serve our customers and promote sustainable heating solutions,” said Timo Peltokorpi, COO of ProPellet. “This collaboration marks an exciting step in advancing the green transition in the heating sector.”

A Sustainable Investment Strategy

The transaction, expected to close by the end of 2024 pending competition authority approval, aligns with the CapMan Nordic Infrastructure II fund’s Article 8 sustainability strategy, which focuses on creating value through green transition investments. The fund has a proven track record with investments in renewable energy, district heating, and sustainable infrastructure businesses, including solar energy company Skarta Energy and Haminan Energia’s energy networks.

CapMan Infra, headquartered in Helsinki and Stockholm, specializes in driving operational growth and development for infrastructure companies. Its team of 14 professionals works closely with management, customers, and asset owners to deliver sustainable and scalable solutions.

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation and €6 billion in assets under management. As one of the private equity pioneers in the Nordics we have developed hundreds of companies and assets creating significant value for over three decades. Our objective is to provide attractive returns and innovative solutions to investors by enabling change across our portfolio companies. An example of this is greenhouse gas reduction targets that we have set under the Science Based Targets initiative in line with the 1.5°C scenario and our commitment to net-zero GHG emissions by 2040. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover real estate and infrastructure assets, natural capital and minority and majority investments in portfolio companies. We also provide wealth management solutions. Our service business includes procurement services. Altogether, CapMan employs around 200 professionals in Helsinki, Jyväskylä, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are listed on Nasdaq Helsinki since 2001. www.capman.com

Media Contact:

Pekko Haaksluoto
Partner, CapMan Infra
tel. +358 40 584 6031

SOURCE: CapMan