Spain’s Official Credit Institute (ICO) is to invest €15m in Spanish insurance group Mapfre’s green biofuel fund.
Mapfre, together with its partner, IAM Carbonzero, launched the Mapfre Energías Renovables II vehicle last year, as the first fund in Europe dedicated to investment in biomethane, a 100% green biofuel derived from agriculture sector waste.
ICO will be investing the capital in the fund through Axis, its venture capital subsidiary. Axis said it will make the investment through its own fund, Fond‑ICO Sostenibilidad e Infraestructuras, which promotes investment in infrastructure projects for sustainable mobility, renewable energies, and circular economy.
Given the types of projects being promoted by the Mapfre Energías Renovables II fund, the amounts that Axis is investing can be sourced from the EU Next Generation funding that the ICO Group will be managing during the second phase of Spain’s Recovery Plan. This will take place through its ICO Verde initiative, which is focused on promoting the country’s green transition.
Since its launch, Mapfre Energías Renovables II – categorised as an Article 9 product under the new EU Sustainable Finance Disclosure Regulation – has been developing a total of nine plants across Extremadura, Castile and León, and Madrid. It is expected that the construction phase of these projects will begin during the last quarter of this year and the beginning of 2025, with their entry into operation in 2025.
In addition, IAM Carbonzero has currently identified 20 projects in the origination phase in the regions of Andalusia, Aragon, Catalonia, Castilla-La Mancha, Murcia, and Galicia.
Mapfre said its aim during this first phase is to raise up to €100m, for construction and development of 20 to 25 biomethane plants in Spain over a five‑year period.
It counts on some of the best partners to carry out its efforts: IAM Carbonzero is responsible for identifying and executing projects, while Abante is the financial partner.
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