The project seeks to invest in the construction and development of between 20 and 25 power plants of this kind of energy in Spain in five years
The first of its kind, this vehicle will be open to other institutional investors and private banking clients
The target return for MAPFRE Energías Renovables II, which it is launching alongside its partner Abante, is between 12%-15% per year
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. As an innovative project in the European context, it 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 fund, which will be opened to other institutional investors and private banking clients, aims to raise up to 100 million euros, in a first phase, for the construction and development of between 20 and 25 plants in Spain over a five-year period. In turn, this will generate a total of 70 permanent jobs and 240 indirect jobs.
This means a five-fold increase in the current installed capacity of this type of energy in Spain. “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.
Specifically, this project aims to address several core strands, such as the decarbonization 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.
“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,” explains Joaquín Casasús, partner and General Manager of Abantes Asesores Gestión.
This is MAPFRE’s second renewable energy project and is part of its commitment to alternative assets and, in particular, ESG investments. Two years ago, it signed a partnership with Iberdrola to invest in wind and photovoltaic plants in Spain. Last month, the partnership was taken to the next level with the addition of 150 new megawatts (MW), bringing the joint venture to 445 MW.
MAPFRE is a global insurance company. It is a benchmark company in the Spanish market, the largest Spanish insurer in the world, the top insurance group in Latin America, and is ranked sixth largest in Europe in terms of Non-Life premium volume. With over 31,000 employees, MAPFRE had revenues of nearly 29.5 billion euros in 2022 and a net profit totaling 642 million euros.
Abante is an independent financial group specializing in financial consulting and asset management, geared to the long-term interests of clients. Formed in 2002, the Abante Asesores group signed a strategic partnership with MAPFRE in 2019 to create the most competitive independent platform for financial consulting and asset management on the Spanish market.
It currently manages 10 billion euros, advises more than 11,300 clients, and has a team of almost 300 professionals in nine offices: Madrid, Barcelona, Bilbao, Logroño, Pamplona, Zaragoza, Valladolid, Seville, and Málaga. Abante’s clients are private investors, family and corporate groups, family offices, and institutions that require a comprehensive financial, wealth, real estate, and corporate advisory proposal that includes specialized and independent access to all financial, alternative, and real estate markets and assets.
About IAM Carbonzero
IAM Carbonzero is the company that will act as the fund advisor. It boasts a multidisciplinary team with extensive experience in the energy sector, including engineers, chemists, economists, financial officers, lawyers, and biologists with in-depth knowledge of the energy market, renewable energies, and, in particular, biogas and biomethane.
Its objectives include contributing to the reduction of greenhouse gas emissions; improving waste management; reducing energy dependence and improving security of supply; promoting social and territorial integration through investment in rural areas, encouraging people to remain in place and attracting talent by creating jobs; and boosting the circular economy through the transformation of organic waste into biomethane and biofertilizers.