Spanish insurance company MAPFRE announced today the launch of MAPFRE Energías Renovables II, FCR, a new fund aimed at investing in the construction and development of biomethane projects in Spain.
With a goal to raise €100 million in its first phase, the new fund marks the first biomethane mutual fund to be launched in Europe.
José Luis Jiménez, Group Chief Investment Officer at MAPFRE, said:
“We are very proud to present this unique and highly profitable project — a private-sector initiative in collaboration with the public administration — to contribute to the increasingly necessary energy independence from foreign sources. This is another clear example of our commitment to socially responsible investing, as we seek to mitigate the environmental impact of our portfolio while improving the social and environmental conditions of the communities where we invest.”
Biomethane, or renewable natural gas (RNG), is expected to play a critical role in the transition to cleaner energy sources, particularly for sectors in which energy solutions such as wind or solar are less practical. Biomethane is produced from organic waste, such as agricultural, industrial, and household wastes, and is chemically identical to fossil-based natural gas, enabling it to support the decarbonization of hard-to-abate sectors such as road transport and heavy industry, without needing to replace existing transmission and distribution infrastructure.
In addition to providing the benefits of fossil gas without its carbon emissions, biomethane also helps avoid methane emissions that would be released through the decomposition of organic waste.
Investments by the new fund are expected to help the development of between 20 and 25 plants in Spain, supporting a 5-fold increase in installed biomethane capacity in the country.
MAPFRE is launching the fund in partnership with Abante, who will act as the fund advisor, and energy sector specialist IAM Carbonzero.
Joaquín Casasús, partner and General Manager of Abantes Asesores Gestión, said:
“Collaborating on a project with MAPFRE and IAM Carbonzero is very interesting for Abante, as well as its investors. It makes a very positive impact on society.”
The fund will be open to other institutional investors and private banking clients.