CVC DIF and VNG AG strengthen the future of BALANCE through a growth partnership
The investment in BALANCE will be made through the DIF Infrastructure VII (DIF VII) fund and will support the ongoing growth of the business.
In selecting the investor, VNG placed particular emphasis on finding a long-term, reliable partner with whom it could jointly develop BALANCE. The partnership with CVC DIF aims to further drive BALANCE's growth, with the vision of becoming the leading biogas platform in Germany. The transaction is in line with the Group's "VNG 2030+" strategy, with which VNG is accelerating the transformation in the field of renewable and decarbonized gases. With the sale of the minority stake, VNG remains the majority shareholder. BALANCE will continue to be fully consolidated within the VNG Group. Both parties have agreed not to disclose further details of the transaction.
Biogas is an important component in tomorrow’s decentralised energy system and is already helping to increase the share of green gases in the grid. Compared to wind and solar energy, biogas offers a decisive advantage: Its production is independent of weather conditions. Biogas is a reliable energy source that can be stored and flexibly complements other forms of renewable energy. BALANCE currently has a portfolio of 42 biogas facilities in Northern and Eastern Germany with a total installed rated thermal output of around 197 MW. This makes BALANCE one of the largest biogas plant operators in Germany, supplying green energy to more than 180,000 households every year.
Ulf Heitmüller, CEO of VNG, contextualised the transaction as follows: “We are delighted to have gained a partner for BALANCE in CVC DIF, a party that brings a wealth of expertise in supporting its financial investments on their growth path through active value creation. CVC DIF also shares our perspective on biogas as an energy source, the potential of BALANCE, and values such as trust and transparency in our collaboration. Together we can further strengthen BALANCE's growth and competitiveness and, in line with our “VNG 2030+” corporate strategy, expand our green gas portfolio in the future. In this way, we are making an important contribution to the supply of renewable and sustainable energy.”
Gijs Voskuyl, Managing Partner of CVC DIF, also underlined the central role of the partnership approach with VNG for the investment: “The dynamics in the biogas market make it clear: Biogas is a key component in the decarbonisation of the energy industry. On the back of strong regulatory tailwinds , we want to actively support this development and see the partnership with VNG as offering a highly professional setup and thus ideal conditions for BALANCE as a platform in Germany to participate in market growth. We are convinced that BALANCE is a high-quality investment that will provide our investors with stable returns and offer potential for long-term growth and sustainable value creation.”
The completion of the transaction is subject to approval by the relevant antitrust authorities.
VNG is a group of over 20 companies active in the European energy industry, employing about 1,900 people. As a gas importer and wholesaler as well as an operator of critical gas infrastructure, the Group, which is headquartered in Leipzig, is central to the secure supply of gas in Germany. With the “VNG 2030+” strategy, VNG is also pursuing an ambitious path for a market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, paving the way for a sustainable, secure supply and, in the long term, climate-neutral energy system of the future.
CVC DIF (formerly DIF Capital Partners) is a leading global mid-market infrastructure equity fund manager. Founded in 2005 and headquartered in Amsterdam, the Netherlands, CVC DIF has c. €18 billion of infrastructure assets under management in energy transition, transport, utilities and digitalisation. With over 240 people in 12 offices, CVC DIF offers a unique market approach, combining a global presence with the benefits of strong local networks and sector-focused investment capabilities. CVC DIF forms the infrastructure strategy of leading global private markets manager CVC. This partnership allows CVC DIF to benefit from CVC’s global platform, with 30 offices across five continents. More information at: www.cvcdif.com
BALANCE is one of the leading operators of biogas plants in Germany. The company was founded in 2006 and currently operates 42 biogas facilities in Northern and Eastern Germany with a total rated thermal output of approx. 197 MWFTC. BALANCE is a wholly-owned subsidiary of Leipzig-based VNG AG, a Group specialising in gas and gas infrastructure with over 20 companies operating throughout Europe. It supplies approximately 180,000 households with climate-friendly energy. More at www.balance-vng.de.
Press picture
Biogas plant of BALANCE in Oebisfelde (Copyright: VNG/ Torsten Pross)
