Asper Investment Management-backed Vasa Värme announced today the signing of an agreement with the Swedish municipality of Ekerö for the building and operation of a new biomass-fueled district heating system across the municipality, following a competitive tendering process.
The new entity, which will be jointly owned by Vasa Värme and the municipality, will look to provide sustainable and affordable heat to all consumers in this growing commuter city outside of Stockholm, starting with a long-term supply agreement with the municipality.
The production plant and distribution network will be developed, built and operated by Vasa Värme and are expected to be commissioned prior to the winter 2020 firing season, requiring approximately SEK 65m (c€6m) of investment initially.
This successful tender is in line with Asper’s strategy to develop large-scale businesses through organic growth and selected M&A opportunities, supported by industry-leading management teams.
Sustainable heat as an asset class is a key pillar of Asper’s investment strategy and Asper aims to continue to play an active role in the decarbonisation of this important sector.
Asper is a specialist investment firm that focuses on private investments in sustainable real assets, including renewable power, sustainable heat and other clean infrastructure. It serves institutional investors such as pension funds, insurance companies and funds-of-funds.
Vasa Värme is a portfolio company set up in 2014 by the Asper team. It owns and operates 5 biomass-fueled district heating networks across Sweden, delivering c180GWh of low carbon heat to over 1,000 customers.
Asper was previously part of the private equity firm Hg, which it replaced as manager of two dedicated renewable energy funds with total AUM of €850m. In December 2017 Asper and Hg jointly announced the spinout of the renewable energy team and funds to Asper.