Infranity, a Paris-based asset manager specialising in sustainable infrastructure, has invested €200m in Blue Elephant Energy, a Hamburg, Germany-based renewable energy company which runs solar parks and onshore wind farms in Western and Central Europe and South America.  

The financing agreement, which includes an option to double the initial investment to €400m, will fund the development and construction of one gigawatt of renewable energy capacity across Europe.

Blue Elephant’s energy portfolio is in line with European plans to reduce dependence on fossil fuels and ramp up the transition to clean energy, according to Infranity. The EU’s renewable energy strategy is targeting a one-third increase in installed renewable energy capacity to 1,200 gigawatt by 2030.  

“Our partnership with Blue Elephant Energy represents a significant step forward in our commitment to fostering sustainable energy solutions across Europe. We are very pleased to support Blue Elephant in their next growth chapter and we believe that this collaboration underscores our belief in the transformative power of renewable energy and its crucial role in addressing climate change,” said Garbiñe Unda, investment director at Infranity.

As previously reported by Impact Investor, Infranity launched a €3bn Europe-focused debt strategy in September, with half of its portfolio allocated to climate solutions.

Since its foundation in 2016, Blue Elephant Energy has built a 1,730 megawatt renewable energy portfolio. In addition, the German firm has a development pipeline of around 9.5 gigawatt solar, wind energy and storage assets. By the end of last year, Blue Elephant’s assets had avoided over 3.7 million tonnes of CO₂ emissions.

The partnership with Infranity enhances Blue Elephant’s capital structure while it also helps unlock new opportunities for growth, according to Dorothee Klinkmann, head of corporate and project finance at Blue Elephant Energy.

“We look forward to the continued momentum this financing will bring, positioning us to execute our growth strategy more effectively and deliver on our long-term goals,” Klinkmann said.