Rotterdam, June 2024

In June, Asper showcased its industry leadership at the Euroheat & Power Congress in Rotterdam, engaging in panel discussions on financing the heat decarbonisation and forming alliances for growth through private equity. Following the panel discussions, Asper invited its network of investors to an exclusive workshop session on district heating networks together with the CEOs of the platforms in the Netherlands, United Kingdom and Ireland. The workshop offered a deep dive into the practicalities of operating district heating networks and highlighted its importance for energy transition investors.
Asper's Industry Participation

District heating networks are a low-carbon and cost-effective solution for heating buildings in urban areas, using various sources of heat such as waste heat, geothermal, bioenergy, or air source heat pumps. Since its first investment in 2014, Asper has held a conviction on the investment opportunity of decarbonising the heating and cooling sector, which still accounts for 15% of global greenhouse gas emissions (World Economic Forum). Our long-lasting partnership with the industry association Euroheat & Power is built on a common understanding of the need for private capital to finance the heat transition. As a regular participant in its annual congress, Asper took part in one panel discussion this year, and hosted two workshop sessions:


Panel Discussion: “From zero to (green) hero. Financing a true heating transition” Our Head of Sustainability Jiska Klein participated in a panel discussion alongside Inka Klinger, Head of Project Finance at the Hamburg Commercial Bank and Romain Arette-Hourquet, Project Finance Investment Manager at Kyotherm. This session delved into real life case studies showcasing successful financing models – from public funding to private funding – that support green investments and enable a real shift away from fossil-based and inefficient heating and cooling systems.

Workshop: “Private Equity and district Heating – Leveraging Powerful Alliances for Growth” The purpose of the session was to exhibit how private equity can be highly effective in financing the decarbonisation of heating and cooling demand. Featuring a case study from the successful partnership between Asper and its portfolio company Energie voor Elkaar (EVE), the panel included insights from Valentijn Kleijnen (CEO at EVE) and Olivier Delpon de Vaux (Director at Asper).

Insights from Asper’s District Heating Institutional Investors Workshop Following its participation at the Euroheat & Power Congress, Asper organised a 4-hour hands-on workshop, focusing on the key features and success factors for investing in district heating assets. We believe that it is key for investors to become more familiar with district heating as an asset class, as a proven solution to decarbonise heating. The asset class features a highly attractive risk-return profile, alongside large growth potential, sustainable impact and greenfield additionality. To delve deeper into the asset class, we invited several partners and portfolio companies to present the case for district heating, and further bridge the knowledge gap:

  • Tom Forrow, Managing Director at Jefferies, gave an introduction to the district heating sector, explaining why it is an attractive infrastructure asset class, how the market has evolved over the last decade, and what are the main drivers and challenges for investors. He also presented different opportunities and characteristics of the district heating markets across Europe.

“We’re not just investing in the technology; we’re investing in the people and the communities that are going to benefit from this transition to a low carbon future” – Tom Forrow

  • Olivier Delpon de Vaux, Director at Asper and responsible for heating sector investments, highlighted Asper’s investment strategy in district heating platforms across Europe, focusing on markets with robust macroeconomics, ambitious decarbonization targets, supportive policies, and an entrepreneurial fabric of local developers. Asper’s value creation strategy is based on building long-term cash flows at an entry cost much lower than the market value of the assets once they are operational and de-risked.

“We see a huge need for investments across all of Europe because every single country you come across will have significant needs for investment in district heating infrastructure” – Olivier Delpon de Vaux

  • David Connolly, CEO of HeatGrid Ireland, presented on district heating technology, explaining that it is a versatile and proven technology, attractive to various sources of low carbon and renewable heat. District heating can help decarbonise urban buildings and reduce reliance on fossil fuels, especially gas. It can also integrate with renewable electricity and provide storage and flexibility options. However, district heating networks require careful planning, design, and implementation to match the local demand, supply, and conditions. They also need to evolve and adapt over time to capture new opportunities and meet changing customer needs.

“The magic of district heating is its versatility with how you produce that heat” – David Connolly

  • Valentijn Kleijnen, CEO of Energie voor Elkaar, focused his presentation on how to generate a compelling customer value proposition to serve industrial buildings and households. Some district heating businesses face resistance from customers, consumers and regulators, who have different perceptions and expectations about the costs, benefits, and risks of the technology. With its “Partner of Choice” model, EVE has successfully overcome these barriers to become the Netherlands’ fastest growing district heating company.

“We have a very strong value proposition for our customers, which is based on three pillars: sustainability, affordability and reliability” – Valentijn Kleijnen

  • Andrew Wettern, CEO of 1Energy delved into the stakeholder management side of building greenfield district heating networks. 1Energy has secured a portfolio of five projects in different UK cities and has an ambition to invest £1 billion in the next decade. To do so, public sector management, including public funding, public sector procurement, regulators and engagement with local communities requires a partnering mentality and a convincing value proposition to achieve decarbonisation of heat at the lowest possible cost and with the least hassle for the customers.

“We are the first in the UK to deploy institutional investment into city centre heat networks” – Andrew Wettern

Interested?

Please get in touch at
investorrelations@asper-im.com

Luis Quiroga

Head of Investor Relations

luis.quiroga@asper-im.com

Luis co-founded Asper in 2016 with Luigi and Emma, with whom he had worked at HgCapital since 2008.

At Asper, Luis is responsible for relations with Asper’s clients and leads Asper’s business development fundraising.  Luis also remains involved in origination and execution of new investments, leveraging on his over 15 years of experience in energy investments.  Luis is a member of Asper’s Investment Committee, Valuation Committee and the Sustainability Committee. An expert in Energy Transition policy advising think-tanks and research institutes, Luis also oversees Asper’s regulatory coverage.

Luis started his career with The Boston Consulting Group (Munich and Madrid) before joining Credit Suisse’s European Energy Investment Banking Team.  Luis holds a Master of Science in Foreign Affairs (Fulbright Scholar) from Georgetown University and a joint degree in Law and in Business Administration from ICADE Madrid.  He is fluent in English, French, German, Portuguese and Spanish.

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