Allianz to invest in Ren-Gas

Written by Adam Cadle

12/12/2022

Allianz Capital Partners, on behalf of Allianz insurance companies (Allianz), has signed an agreement to acquire a minority stake in the Finnish project developer Ren-Gas, and provide funding valued at €25m.

Ren-Gas is the leading Nordic green hydrogen and power-to-gas project developer based in Finland. The company was established in 2021 by a team with strong sector experience and execution track record, with the goal to develop a decentralised power-to-gas portfolio – first in Finland with the potential to be expanded wider in Europe.

The main product of Ren-Gas’ plants is renewable synthetic methane, which is made from green hydrogen and captured carbon dioxide. Ren-Gas will produce green hydrogen using renewable energy from local wind farms for the electrolysis. Via subsequent methanation the green hydrogen is then combined with captured biogenic CO2 from district heating plants utilising mostly renewable fuels, while simultaneously excess process heat is provided back to the district heating network. As synthetic renewable methane´s chemical composition is similar with biomethane or natural gas it can be used as fuel by heavy-duty trucks, ships and for other industrial purposes. Overall, the process is generating renewable methane from water, wind electricity and captured CO2.

“We consider this a significant milestone in our commitment to invest in projects that help drive the energy transition," Michael Pfennig, co-head of infrastructure at Allianz Capital Partners, said.

"Ren-Gas is our second direct infrastructure investment in Finland and our first direct investment into green hydrogen underscoring Allianz’s effort to support the de-carbonisation process through tangible infrastructure projects. We appreciate Ren-Gas’ innovative approach to develop green power-to-gas plants in connection with existing power plants and district heating systems and thus effectively utilising the value of sector coupling."

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