Foresight Energy Infrastructure Partners invests in 85 Degrees Renewables to expand Dutch geothermal business

Foresight Energy Infrastructure Partners (FEIP), an energy transition fund managed by Foresight Group, has made a substantial equity investment in 85 Degrees Renewables, a company focused on geothermal energy in the Netherlands.

The investment marks a significant step in expanding the company’s Dutch geothermal capacity in Zoetermeer, Netherlands, with a total heat capacity of 61.8 MW.

FEIP, an €850mn fund, specialises in investing in clean energy assets across renewables, storage and grid infrastructure. It aims to build a diversified portfolio of high-quality energy infrastructure assets, contributing to the energy transition by investing in renewable energy generation and critical infrastructure to enable the integration of further renewables into the grid.

Foresight Group is a leading infrastructure and private equity investment manager founded in 1984. With a focus on ESG and sustainability-led strategies, it aims to provide attractive returns to institutional and private investors from private markets.

Foresight manages over 400 infrastructure assets, with a focus on solar and onshore wind assets, bioenergy and waste, renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages eleven regionally focused investment funds across the UK and an SME impact fund supporting Irish SMEs. The company operates in eight countries across Europe, Australia and the United States, with AUM of GBP12.1bn ($15.1bn) as of September 30, 2023.

85 Degrees Renewables is an Anglo-Dutch company dedicated to advancing geothermal energy. It leverages advanced technologies and industry expertise to establish geothermal energy as a reliable source of clean energy for a sustainable future. Geothermal energy is clean, safe and reliable, providing consistent power and heat without greenhouse gas (GHG) emissions. With low carbon intensity and very long asset lifetimes, geothermal energy is a sustainable choice for meeting energy needs. The Netherlands has set a goal of achieving 50 petajoules/578 GW in geothermal energy capacity.

Nick Thain, chief investment officer of 85 Degrees Renewables, expressed his company's commitment to achieving the renewable energy goals of the Netherlands, thanks to FEIP's substantial investment.

"We are pleased to partner with Foresight and FEIP for this substantial investment. Securing the funding for the construction of 62 MW of geothermal heat capacity underscores the potential of our company and reflects our shared commitment towards achieving the renewable energy goals of the Netherlands," said Thain.

Charlie Wright, investment director at Foresight, added: “We are thrilled to support 85 Degrees Renewables as we look to expand our activities in the Dutch geothermal sector. This investment represents a significant milestone in the renewable energy sector and demonstrates our confidence in the company’s capabilities, and the attractiveness of the Dutch market for geothermal energy, which is backed by a highly supportive regulatory framework and ambitious government targets to decarbonise heat consumption.”

Geothermal energy plays a vital role in achieving a sustainable and low-carbon future, offering clean, reliable power and heat without GHG emissions. FEIP's investment in 85 Degrees Renewables represents one of the most significant recent geothermal investments in Europe, further solidifying the Netherlands' position as a leader in the sector.

85 Degrees Renewables has ambitious plans to develop 1 GW of geothermal energy, says Bart Duijndam, chief executive officer of 85 Degrees Renewables.

"This investment represents a significant milestone in the Netherlands’ objective to decarbonise heat supply via the adoption of geothermal energy and contribute to a sustainable future for our country. By leveraging geothermal energy as a clean, safe and reliable energy source, we aim to make a meaningful contribution to a sustainable and carbon-neutral future. Moreover, as geothermal energy replaces gas for heating in the Netherlands, it simultaneously frees up electricity capacity from the National Grid, aligning with our commitment to energy transition," stated Duijndam.

The investment by FEIP will enable 85 Degrees Renewables to scale its operations and accelerate the deployment of geothermal energy infrastructure in the Netherlands. The company's expertise, coupled with FEIP’s substantial financial backing, will enable the build-out of the company’s substantial pipeline which benefits from the Dutch SDE++ subsidy, and create a lasting impact on the renewable energy landscape.