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CapMan Infra and St1 to co-operate on the construction of ground source heat plants


CapMan Infra Press Release
27 September 2021 at 8:30 a.m. EEST

CapMan Infra and St1 to co-operate on the construction of ground source heat plants

CapMan Infra has entered into co-operation with St1 to accelerate ground source heat plant investments in Finland. As part of the arrangement, the CapMan Nordic Infrastructure I fund acquires a ground source heat plant portfolio owned by St1 Lähienergia Oy, and finances nationwide investments in new heating plants generating sustainably produced energy.

CapMan Infra and St1 are launching a partnership through which CapMan Infra finances new ground source heat plants, sold and built by St1, for apartment buildings and commercial and public properties throughout Finland. The share of properties utilising ground source heat has been steadily rising in Finland for the last ten years. The goal of the arrangement is to further speed up ground source heat investments while decreasing emissions, by offering clients heating solutions through an effortless and cost-efficient lifecycle model.

As part of the arrangement, CapMan Infra acquires St1 Lähienergia Oy’s ground source heat plant portfolio, which serves approx. 130 properties and produces about 38 GWh of sustainable local energy annually. St1 continues to operate the plants and serve existing clients as part of the agreed co-operation. The investment programme aims to at least double the energy production by 2024.

“Heating of buildings stands for about 30% of Finland’s entire greenhouse gas emissions. Geothermal heating is renewable energy and lowers CO2-emissions considerably as compared to traditional electricity and oil heating. It is great that we are able to facilitate new investments in ground source heat plants together with a leading Nordic energy company and offer heating solutions through an innovative and competitive lifecycle model. The partnership is also an excellent example of the type of collaboration where CapMan Infra creates added value to an industrial partner as well as the end-customer through investments,” comments Ville Poukka, managing partner at CapMan Infra.

“The partnership between St1 and CapMan Infra is an excellent example of the recognition that St1 enjoys as a reliable partner also for the execution of scalable geothermal and ground source heat systems. It is paramount for lifecycle model projects to secure reliable and disturbance-free heat generation for residents under all conditions. We are proud to be part of this effort to produce sustainably generated heat for a broader customer base,” comments Matti Pentti, director of St1 Oy’s Heat from the Ground division.

“As the developer and operator of St1 Lähienergia Oy plants we have gained experience over many years on how to plan, build and operate energy efficient and reliable heat plants over the lifecycle,” adds Kristian Savela, CEO of St1 Lähienergia Oy.

The arrangement will be executed through CapMan Nordic Infrastructure I fund’s portfolio company Loviisan Lämpö.

“With this arrangement the Loviisan Lämpö Group expands its heating business to new areas. Going forward we will be able to offer nationwide heating solutions in co-operation with St1 also outside our current district heating network,” says Mikko Paajanen, CEO at Loviisan Lämpö.

The transaction is expected to close during 2021 and is subject to customary closing conditions.

For more information, please contact:

Pekko Haaksluoto, Investment Director, tel. +358 40 584 6031

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With over 3 billion in assets under management, our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, wealth management, and analysis, reporting and back office services. Altogether, CapMan employs 150 people in Helsinki, Stockholm, Copenhagen, Oslo, London and Luxembourg. We are a public company listed on Nasdaq Helsinki since 2001 and a signatory of the UN Principles for Responsible Investment (PRI) since 2012.

About St1

St1 Nordic Oy is a Nordic energy group whose vision is to be the leading producer and seller of CO2-aware energy. The Group researches and develops economically viable, environmentally sustainable energy solutions. St1 focuses on fuels marketing activities, oil refining and renewable energy solutions such as waste-based advanced ethanol fuels and industrial wind power. The Group has 1250 St1 and Shell branded retail stations in Finland, Sweden and Norway. Headquartered in Helsinki, St1 employs currently more than 1000 people.