Finance, Industrial, Sourcing Renewables  -  June 20, 2023

MAPFRE Launches European Biomethane Mutual Fund

Spanish insurance company MAPFRE seeks to invest in the construction and development of between 20 and 25 power plants in Spain in five years via a new fund.

This financial vehicle will be open to other institutional investors and private banking clients and seeks to raise up to 100 million euros in the first phase.

MAPFRE, alongside its partner Abante and IAM Carbonzero, who will act as the fund advisor and energy sector specialist, is launching the fund MAPFRE Energías Renovables II, FCR. 

The fund will invest in biomethane, a 100% green biofuel obtained from animal and vegetable waste that can be injected directly into the natural gas grid, generate electricity via engines, and be used as a fuel.

The target return for MAPFRE Energías Renovables II, which it is launching alongside its partner Abante, is between 12%-15% per year.

“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,” says José Luis Jiménez, Group Chief Investment Officer at MAPFRE in a statement.

This is MAPFRE’s second renewable energy project. Two years ago it signed a partnership with Iberdrola to invest in wind and photovoltaic plants in Spain. Last month, the partnership added 150 new megawatts (MW), bringing the joint venture to 445 MW.