MAPFRE receives ICO backing for its biomethane fund

09 May 2024

  • The Official Credit Institute (ICO) has earmarked 15 million for the vehicle through its private equity subsidiary AXIS
  • The fund is already developing a total of nine plants in Extremadura, Castile and León and Madrid

The MAPFRE Energías Renovables II, FCR, an innovative fund in Europe launched by the Insurance Group together with its partner IAM Carbonzero at the end of last year to invest in biomethane, a 100% green biofuel obtained from waste from the agricultural sector, has obtained the backing of the Official Credit Institute (ICO).

The government agency will invest 15 million euros through its specialised private equity investment arm, AXIS. Specifically, the operation is articulated through Fond-ICO Sustainability and Infrastructure, a vehicle that promotes investment in infrastructure projects in sustainable mobility, renewable energy and circular economy.

Since its launch, the MAPFRE Energías Renovables II fund is developing a total of nine plants in Extremadura, Castilla y León and Madrid. They are expected to reach the construction phase in the last quarter of the year and early 2025 and to be operational throughout 2025. In addition, IAM Carbonzero has currently identified 20 projects in the origination phase in the regions of Andalucía, Aragón, Cataluña, Castilla La Mancha, Murcia and Galicia.

MAPFRE intends to raise up to 100 million euros, in this first phase, for the construction and development of between 20 and 25 plants in Spain over a period of five years, which will generate approximately 70 permanent jobs and 240 indirect jobs. To this end, it has the best partners: IAM Carbonzero, responsible for project search and execution, and Abante, as Management Company. This fund has been classified as item 9 according to SFDR. 

Given the type of projects promoted by the MAPFRE Energías Renovables II Fund, the resources invested by AXIS may come from the Next Generation funds to be managed by the ICO Group in the second phase of the Recovery Plan through the ICO Verde initiative, aimed at promoting projects that boost the green transition.