"The end of 2024 has demonstrated successes that are linked to the fundamentals of our investment strategy. We are focused on primary deal flow in small- to mid-market infrastructure, while leveraging strong partnerships formed across various sectors. The investments support financial targets, while aiming to generate incremental value from an environmental, social and governance (ESG) focus, as outlined in the Sustainability Inspires podcast. As we look forward to 2025 opportunities, we were pleased to welcome six new colleagues to our team in 2024."
Dominic Helmsley, Head of Core Infrastructure
Investment updates
Italian biogas platform
- Our partnership with Blu-H Energy, established in 2023, has helped our strategy to create a scalable biomethane platform, by acquiring operational biogas assets and upgrading them to produce biomethane.
- Throughout the fourth quarter of 2024, our fund acquired six further biogas facilities, taking our platform to 14 in total, with generation potential of over 100 gigawatt hours (GWh) of energy. Further investments, to expand the platform, are under consideration.
- The platform aims to achieve stable cashflows through 15-year incentive tariffs. Positive progress has been made with tariff awards received.
- In line with our ESG focus, the platform is supporting Italy’s energy transition objectives. It’s also helping to reduce Italy’s dependence on external natural gas imports. The plants will deliver biomethane once converted, which will produce at least 80% lower emissions than natural gas.
“These acquisitions reflect our support of the renewable energy and biomethane sectors. We are very pleased with the development of our partnership with Blu-H Energy and we look forward to scaling-up the platform.”
Soti Calochristos, Investment Director
Rolling stock success
- Alongside our partners Rock Rail, we have announced our second investment in the European rolling stock sector. We had a successful closing of a sale-and-leaseback transaction of 31 new six-car, Alstom-built Talent 3 Plus electric-powered trains.
- The trains are fully built and in passenger operation. They support the ambitious European agenda of a modal shift and decarbonisation in the transportation sector.
- This is our sixth investment in rail rolling stock across the UK and Europe. The project benefits from the strong partnership between abrdn and Rock Rail, which has delivered a fleet of 244 trains to date.
“This represents the sixth major investment in rolling stock for the abrdn core infrastructure team. It solidifies abrdn’s position as a major owner of rolling stock. We are committed to delivering safe and reliable essential infrastructure to local communities, and we appreciate everyone’s involvement and effort in successfully reaching a financial close.”
Nick Flynn, Investment Director
Finnish financing in full flow
- In the fourth quarter of 2024, over €300 million of debt financing was completed across our Finnish portfolio companies, through three separate financings.
- We successfully completed debt financings for three of our Finnish assets: Auris Energy (“Auris”), Outokummun Energia (“OKE”), and Etelä-Savon Energia Oy (“ESE”). This allows for further development to support the energy transition trends.
- Auris, a leading Finnish energy company, expanded its financing to support its growth in the service market and transition fuels. Finalised in November, a consortium of three lenders committed to funding the company with over €100 million of capital.
- OKE, a regional energy company, successfully refinanced and increased the size of its existing financing facilities through its existing lender.
- ESE, another regional energy company, was successfully financed soon after acquisition in March 2024. A consortium of institutional lenders invested in the company through an oversubscribed financing round. This demonstrated the ongoing demand and support for assets in the Nordic region that support the energy transition.
“This incremental financing demonstrates lenders’ support for the energy transition in Europe. Established companies, with long-term operational track records, have a role to play in delivering net-zero goals in each region.”
Maciej Tarasiuk, Head of Investments
Sustainability initiatives
Four of our assets achieved the highest five-star rating in the 2024 Global Real Estate Sustainability Benchmark (GRESB) assessment: Auris Energia; Loimua Oy; and Rock Rail East Anglia and Moorgate, which scored a perfect 100/100.
In the latest Principles for Responsible Investment (PRI) assessment, we improved our direct infrastructure score from 92% to 94% and retained our five-star rating.
At an asset level, initiatives of note included:
- The Unitank board (Germany) agreed a new net-zero target and formalised governance for decarbonisation.
- Okun Energia (Finland) held a successful consultation event on its biodiversity enhancement project.
- Loimua Oy (Finland) successfully connected the Assi Hospital to its network, which will use waste heat from cooling.
Our latest sustainable investing content
Core Infrastructure Sustainability Update 2024
Podcast: Sustainability Inspires: how infrastructure delivers for investors and the planet
Team updates
- Alex Dakin joined us from Evercore as an Investment Manager
- Mirco Barillari joined us from CDP Equity as a Senior Investment Analyst
- Francisco Costa Guimaraes and Tobias Damm joined us from Rothschild and JP Morgan respectively, as Investment Analysts
Events
- abrdn Investments is sponsoring and attending the Infrastructure Investor Global Summit in Berlin from 17-to-20 March 2025. We look forward to connecting with many investors and stakeholders during the event.
- Maciej Tarasiuk, Head of Investments, Core Infrastructure, attended a panel discussion on core infrastructure investing in November 2024. A recording of the conference can be found here Agenda | Infralogic Investors Forum Europe 2024
Contact us
If you would like to find out more, please contact one of our investment specialists below:
Dominic Helmsley, Head of Core Infrastructure
dominic.helmsley@abrdn.com
Maciej Tarasiuk, Head of Investments, Core Infrastructure
maciej.tarasiuk@abrdn.com