Swedish fund manager Infranode has agreed an investment in local solar and geothermal firm Eneo Solutions.
The company focuses on distributed heat and electricity generation, installing small-scale projects and providing geothermal heat pumps. While Infranode declined to state the size of the initial investment, founding partner Philip Ajina said a further Skr500 million ($56.5 million; €52 million) will be invested in the coming years.
The deal is the second agreed by the fund since its launch in October 2014, following a tie-up with Vasa Varme, another Swedish district heating investment. It is also in contention to acquire energy, heating and recycling firm Kemab from the Karlskoga Municipality, in Sweden, a deal that could be worth Skr2.2 billion. However, Infranode is competing against Infracapital for the company and the municipality’s council met this week to discuss the merits of the two investors.
“Both solar and geothermal heat pump energy generation are by now proven technologies,” explained co-founder Christian Doglia. “The investment is complementary to our existing and coming investments in district heating.”
Swedish utility Vattenfall also entered the geothermal market this month, acquiring a 35 percent share in the country’s largest geothermal supplier BrainHeart Energy Sweden. Approximately 400,000 homes in Sweden use geothermal energy for their heating needs.
Infranode has in recent months secured investments in its Nordics-focused platform from the European investment Bank, Swedish pensions Folksam and KPA as well as Finnish insurance company LocalTapiola. The fund has so far garnered Skr3.55 billion and Ajina told Infrastructure Investor it expects a summer closing for its Skr4 billion target.