MAPFRE launches first biomethane mutual fund in Europe

Written by Dan McGrath

19/6/2023

The first biomethane mutual fund in Europe has been launched by global insurance company, MAPFRE, alongside its partners Abante and IAM Carbonzero, who will act as the fund advisor and energy sector specialist.

‘MAPFRE Energías Renovables II, FCR.’ will invest in biomethane, a 100% green biofuel obtained from animal and vegetable waste that can be directly injected into the natural gas grid to be used as a fuel to generate electricity via engines.

The project is MAPFRE’s second renewable energy project and is part of its commitment to alternative assets, and, in particular, ESG investments. The global insurer signed a partnership with Iberdrola two years ago to invest in wind and photovoltaic plants in Spain, and last month added 150 new megawatts (MW) to the partnership, bringing the joint venture to 445MW.

The fund, which will be opened to other institutional investors and private banking clients, aims to raise up to €100m in the first phase for the construction and development of between 20 and 25 plants in Spain in a five-year period. This will generate a total of 70 permanent jobs and 240 indirect jobs.

The target return for MAPFRE Energías Renovables is 12-15% per year. The project aims to address several core strands, such as the decarbonisation of the planet, the energy crisis and the high dependence on imports of natural gas from abroad, as well as investment in the rural economy through agriculture and livestock farming.

Group chief investment officer at MAPFRE, José Luis Jiménez, 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.”

Partner and general manager of Abantes Asesores Gestión, Joaquín Casasús, added: “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.”

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