Green investor Ambienta takes stake in European biomass producer Alpin Pellet

Environmental-focused private equity fund Ambienta has invested €2.5m in European biomass producer Alpin Pellet.

The deal was made through the Ambienta I Biomasse vehicle, is the fund's first investment abroad and involves the acquisition of 51 per cent of Alpin Pellet, formed by a spinoff from Savoie Pan, a French company headquartered in Tournon active in wood byproducts. The company produces a solid biofuel composed of dried, pressed woody biomass, used to produce energy and heat.

The purpose of the capital increase is to finance investments to expand production and later to finance growth through acquisitions, the company said. The investment will enable Alpin Pellet to double its production capacity to 40,000 tons per year in 2010.

Following the deal, Ambienta founding partner Rolando Polli will become chairman of Alpin Pellet, while the position of general manager will be filled by Maurizio Annovati, controlling shareholder of Savoie Pan.

Ambienta is the only Italian asset managemer devoted exclusively to environment-related investments. The firm is owned 70 per cent by the management team, 20 per cent by the IntesaSanPaolo group, and the remaining ten per cent by a group of Italian businessmen.