The Nordic Investment Bank (NIB) has signed a 9-year loan to co-finance Danish BioCirc Group’s carbon dioxide liquefication and transport investments at its biogas facilities in Denmark.
The EUR 27.5 million (DKK 205 million) loan is supported by the InvestEU programme and is eligible under NIB’s InvestEU Framework Operation on Clean Energy Transition. This is NIB’s first InvestEU loan in Denmark.
The loan will finance the infrastructure needed at five of BioCirc Group’s eight plants to clean and liquefy captured CO2. Biomethane production is usually done by separating the carbon dioxide from biogas and releasing the carbon dioxide into the atmosphere. Instead of this, the company is aiming to capture and liquefy the CO2, which will enable transport, and safe and permanent storage of carbon dioxide.
“We are excited that NIB has chosen to finance our bioenergy carbon capture and storage project, which is well under way to remove CO2 from the atmosphere from 2026. At BioCirc we build and operate circular bioenergy clusters, which generate renewable energy in various forms and create activity in rural areas. This is a capital-intensive business model and therefore collaboration with professional financial partners like NIB, who share our green purpose, is key,” says Bertel Maigaard, founder and CEO of BioCirc Group.
The company will transport the liquefied CO2 to the Danish-led CCS consortium Project Greensand for underground storage in the Danish part of the North Sea. The project will contribute to Denmark achieving its climate targets by enabling the removal of at least 130,000 tonnes of CO2 annually from the atmosphere.
“This is NIB’s first project-financed loan for carbon capture and storage technology. The project aims to permanently remove CO₂ from the atmosphere, aligning with NIB’s mission. It is also our first InvestEU loan in Denmark, contributing to the country’s progress toward carbon neutrality,” says André Küüsvek, NIB President and CEO.
The borrower is part of the BioCirc Group, one of the largest biomethane producers globally, operating eight biogas plants. The group, ultimately owned by BioCirc Group Holding ApS, was founded in Denmark in 2021.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities such as the European Green Deal and the digital transition.
The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, simplifying funding for investment projects in Europe and making it more efficient and flexible. The programme consists of three components: the InvestEU Fund; the InvestEU Advisory Hub; and the InvestEU Portal.
The InvestEU Fund is implemented through financial partners that will invest in projects using an EU budget guarantee of EUR 26.2 billion. The entire budget guarantee will back the implementing partners’ investment projects and increase their risk-bearing capacity, thus mobilising at least EUR 372 billion in additional investment. Read more at NIB and InvestEU.
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies S&P Global Ratings and Moody’s.
For further information, please contact
Bo Nordberg, Director, Project & Structured Finance, +358 10 618 0395, bo.nordberg@nib.int
Oliver Mølvang Hermansen, Associate Communications Officer, +358 10 618 0225, oliver.hermansen@nib.int
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