European Energy has joined forces with Novo Holdings and Sampension to accelerate development of renewables in Denmark and Sweden.
The new partnership will have a starting capital of DKr650m (€87m) with the intention of purchasing land for solar and wind farms in Denmark and Sweden.
Using debt financing, the partnership can make investments of more than Dkr1.5bn into the fund.
The new partnership will purchase agricultural land that is suitable for renewable energy plants.
European Energy will develop and construct the new wind and solar projects on the acquired land.
The partnership will explore opportunities to combine food production and energy production as well as convert lowland soils to green energy production.
This can lead to both increased biodiversity in the areas and be a double benefit for the climate if more CO2 is bound in the low-lying soils.
The partners expect the collaboration to contribute to Denmark getting one step closer to the ambitions in the Danish Climate Act, where greenhouse gas emissions are reduced by 70% in 2030.
“Investments outside the life sciences sector are an important element in the diversification of Novo Holding’s investment portfolio.
“Partnerships with leading players such as European Energy are in line with our strategic focus on infrastructure. We expect the investment to deliver a good risk-adjusted return, just as it has the additional advantage that it contributes positively to the green transition.
“We look forward to working with European Energy, and we expect to make more similar investments in the coming years, said Morten Beck Jorgensen, Novo Capital Investors managing partner.
European Energy CEO Knud Erik Andersen said: “We are very pleased with the collaboration with Novo Holdings and Sampension.
“They are two highly professional partners with an in-depth knowledge and experience of investments in renewable energy and are both long-term investors, with an understanding of and desire for the investments to be made considering local stakeholders and with strong local support.
“If we are to achieve our green ambitions as early as 2030, it is important that the expansion of green energy production is accelerated, and this partnership is a major step in the right direction, which on market terms contributes to accelerating development of renewable energy.”