EIF Commits €100 Million to Boost Green Energy Projects in Scandinavia through Prime Capital Fund

EIF Commits €100 Million to Boost Green Energy Projects in Scandinavia through Prime Capital Fund

(IN BRIEF) The European Investment Fund (EIF) has committed €100 million to the Prime Green Energy Infrastructure Fund II (PGEIF II), managed by Prime Capital AG, to support renewable energy projects in Scandinavia. This brings the fund’s total size to €313 million, with a focus on developing onshore wind farms and green hydrogen production in Sweden, Finland, and Norway. The initiative is part of the EU’s effort to enhance energy independence and promote clean energy solutions across Europe. PGEIF II is categorized as a “dark green” fund under EU regulations, exclusively investing in sustainable energy infrastructure.

(PRESS RELEASE) LUXEMBOURG/STOCKHOLM/FRANKFURT, 18-Oct-2024 — /EuropaWire/ — The European Investment Fund (EIF) has pledged €100 million to a green-energy infrastructure fund managed by Germany-based Prime Capital AG. This investment aims to drive renewable energy projects across Scandinavia, particularly in Sweden, Finland, and Norway, focusing on onshore wind power and green hydrogen. The commitment brings the total size of the Prime Green Energy Infrastructure Fund II (PGEIF II) to €313 million, with plans to continue expanding the fund to more than €650 million.

Prime Capital’s PGEIF II, an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), is dedicated solely to sustainable investments that align with Europe’s climate and energy goals. The fund will target renewable energy infrastructure projects, including wind farms and sites combining energy generation, storage, and green hydrogen production. These projects are crucial to strengthening Europe’s energy independence and advancing the EU’s REPowerEU initiative, which focuses on reducing reliance on external energy sources.

Prime Capital’s Chief Executive Officer Andreas Kalusche emphasized the significance of EIF’s investment: “We are thrilled to have the EIF on board as a major investor, alongside new and returning investors, particularly in the face of a challenging market environment. The capital raised through PGEIF II will be pivotal in scaling renewable energy infrastructure and enhancing energy independence for Europe.”

The EIF’s participation in PGEIF II follows the successful deployment of Prime Capital’s first fund, which exceeded its performance targets and rapidly invested in projects over two years. PGEIF II will build on this success by expanding Prime Capital’s presence in the Scandinavian renewable energy market, where the firm has developed a strong portfolio in the onshore wind sector.

Dr. Mathias Bimberg, Head of Infrastructure at Prime Capital, highlighted the company’s expertise in Scandinavia, which was instrumental in attracting investor interest: “Our proven track record in the region, coupled with excellent wind resources and a greenfield build-to-core approach, has consistently delivered strong returns. We look forward to expanding our work through PGEIF II and exploring new opportunities in renewable energy across Europe.”

The EIF’s Chief Executive, Marjut Falkstedt, underscored the importance of this investment in promoting sustainable energy solutions: “By supporting Prime Capital’s green energy fund, we are accelerating the transition to renewable energy, which is vital for Europe’s energy autonomy and the fight against climate change.”

Prime Capital has been a significant player in the energy infrastructure sector for over a decade, particularly in the Scandinavian onshore wind market. With over 1.3 gigawatts of capacity under construction or operation and approximately 4 terawatt hours of green electricity generated annually, Prime Capital is well-positioned to continue driving Europe’s green transition.

Background information

EIF

The EIF is part of the European Investment Bank (EIB) Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

InvestEU
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

REPowerEU

In 2022, the European Commission introduced the REPowerEU plan to rapidly reduce dependence on Russian fossil fuels and fast-forward the green transition. In 2023, the Bank’s investments in this plan rose to €21 billion. The EIB Group will provide €45 billion in additional support to the REPowerEU plan over five years by financing businesses and public authorities working on clean energy projects. The EIB will also finance EU manufacturing in strategic net-zero technologies and the extraction, processing and recycling of critical raw materials. The funding will be fully deployed by 2027, and it is expected to mobilise more than €150 billion in investment for targeted sectors.

Over the past decade, the European Investment Bank (EIB) Group has channelled around €108 billion into the European Union’s energy sector and additional finance for clean energy projects around the world. These investments are now helping Europe switch to clean energy sources and sharply reduce its reliance on Russian gas.

Wind Manufacturing

In support of REPowerEU objectives, in December 2023 the EIB Board of Directors agreed to provide €5 billion to strengthen the provision of commercial bank guarantees for companies providing components to the wind power industry. The funds are expected to support up to €80 billion of investment in wind power and increase new installed generation capacity by 32 GW. The guarantees will back investment by companies manufacturing wind power components and grid interconnection equipment. This is an important element of the coordinated support provided by the EIB and European Commission for EU wind power, which is essential to delivering the European Green Deal. Improving access to finance is a cornerstone of the European Wind Power Action Plan, announced by the European Commission in October 2023. The initiative also complements national efforts to back wind turbine manufacturers and wind energy supply chain companies throughout Europe.

Prime Capital

Founded in 2006, Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Infrastructure including Renewable Energy, and Private Debt. Furthermore, the company offers Access Solutions. Prime Capital currently employs about 125 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.

As of June 2024, Prime Capital has approximately €4.3 bn Assets under Management as well as €8.4 bn Assets under Administration.

Media Contacts:

EIB Group: Thomas Eriksson | t.eriksson@ext.eib.org

Prime Capital AG: Andreas Kalusche | Tel: 0049 69 9686 984 36 | andreas.kalusche@primecapital-ag.com

Dr Mathias Bimberg Kihlgren | Tel: 0049 69 9686 984 308 | mathias.bimberg@primecapital-ag.com

SOURCE: European Investment Fund