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Cycleenergy raises €10 mln for biomass expansion

Vienna-based biomass power plant developer and operator Cycleenergy Beteiligungs- und Management AG has secured €10 million in second round funding, the company said in press release.

Lisbon-based New Energy Fund (NEF) led the round with €6 million, together with participation from existing shareholders 3i, a London-based fund advised by 3TS Capital Partners and Cycleenergy GmbH. NEF is managed by Banif Investment Managers, a leading Portuguese private equity and asset management company owned by Banif Investment Bank.

The funding, which brings the total investment in Cycleenergy to approximately €60 million (hereof 17.5 million in equity), will allow the company to accelerate its expansion as part of a market consolidation strategy for the Austrian biomass cogeneration sector.

“We have been very impressed with the strong team at Cycleenergy and particularly their achievements in improving efficiencies at the existing plants,” said Paulo Caetano, director of New Energy Fund and now member of Cycleenergy’s board. “Our due diligence showed that Cycleenergy can rapidly acquire and optimize biomass power plants, especially by raw material management and heat revenue increases.”

“Cycleenergy currently operates three biomass power plants in Austria and with the funding they will have another three acquisitions. These are already concretely identified and will be closed this and next year,” stated László Hradszki of 3TS Capital Partners. “This funding round will secure the company’s position in the Austrian market as a serious consolidator and enable it to attract further funds in the future in order to realize its ambitious plans.”

“The company is poised for rapid growth, both in number of operational assets and in terms of profitability,” said Florian Dietz, CEO and co-founder of Cycleenergy. “Further investments from New Energy Fund, with continuing support from 3TS, will enable our company to become one of the main players in the sector, and to put strategies into practice that protect our environment, which is what we believe in.” (press release)