Foresight Group seals 200-MW Dutch geothermal deal

UK-listed private equity infrastructure investor Foresight Group Holdings aims to build 200 MW of geothermal heat capacity in the Netherlands through a joint venture with 85 Degrees Renewables.

The tie-up is Foresight’s fifth private equity investment in energy, and involves a portfolio of operational, construction-ready and development-stage geothermal projects in the Netherlands and other European markets.

The new joint venture, called Foresight Energy Infrastructure Partners (FEIP), will acquire operational geothermal wells and construct new ones, Foresight said in a statement.

Foresight is investing in geothermal as the technology is supported by the Dutch government as a strategic priority. Geothermal will help decarbonise the country’s domestic and industrial heating systems and contribute to the country’s national emission reduction objectives.

The Netherlands already has 298 MW of geothermal heating and cooling capacity, according to the European Geothermal Energy Council.

Foresight said that studies of geothermal heat provision have demonstrated that geothermal heat can achieve carbon savings in excess of 90% by displacing the need for fossil fuel usage.

Richard Thompson, co-Manager of FEIP and Foresight Partner, commented: “This is a very exciting development for FEIP. The partnership with 85 Degrees paves the way for future expansion across a sector which we see as having considerable investment potential. We very much look forward to working with 85 Degrees to build a leading geothermal platform in the Netherlands directly contributing to the country’s emission reduction objectives.”

Foresight is also taking advantage of 85 Degrees’ considerable expertise in geothermal development and the wider drilling and pipeline sector. Founded by Bart Duijndam, Greg Thain and Maarten Bruggink, the company has been involved in a large proportion of the Dutch geothermal projects developed to date.

Greg Thain, co-founder and Director of 85 Degrees, said: "Having Foresight involved perfectly complements our local knowledge of geothermal markets in Northern Europe. We are excited to be in a position to deliver urgently needed CO2 reductions in the shortest possible time. We feel that our efforts can make a significant contribution to delivering streamlined, fast-track, CO2 reductions.”

The investment is FEIP’s fifth investment and brings a third technology to its portfolio, adding to its existing wind and energy-from-waste assets.

FEIP’s investment strategy has been shaped to achieve specific decarbonisation objectives in line with the EU Green Taxonomy and Paris Climate Agreement.

It aligns with the UN’s Sustainable Development Goals (SDGs), in particular with respect to Affordable and Clean Energy (SDG 7), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).

Foresight currently has GBP8.1bn ($11.2bn) of assets under management (AUM), with over 300 sustainable infrastructure assets with a focus on solar and onshore wind, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets.

Foresight Capital Management manages four funds investing in listed real assets with environmental and social benefits, exceeding GBP1.3bn (1.8bn) of AUM.