agri.capital

About agri.capital

Headquartered in Münster, Germany, agri.capital GmbH was established in 2004 as a producer of renewable energy. The company's business focused on the operation of fermentation plants to generate electricity and gas from biomass. Over the years, agri.capital grew to become one of the largest decentralized energy producers from biogas in Germany, operating approximately 100 biogas plants with a total electrical output of around 103 MW. This vertically integrated energy company's operations encompassed the entire biogas value chain, from producing electricity and heat to injecting biomethane into the natural gas grid. The company's business model involved both the construction of new biogas facilities and the acquisition of existing plants. A significant part of its strategy was the direct marketing of the electricity produced. In a partnership with Next Kraftwerke, agri.capital moved its plants into a virtual power plant, marketing the electricity under the market premium model of the German Renewable Energy Act (EEG). This move also allowed the company to participate in the control energy market, providing grid stability and generating additional revenue. The raw materials for its fermentation process were primarily agricultural inputs like silage maize, grain, and manure, sourced from local farmers with whom the company held long-term contracts. The digestate, a nutrient-rich byproduct of the fermentation process, was then returned to the farmers for use as fertilizer. A notable milestone in the company's history was its rebranding to AC Biogas GmbH in March 2014. This change was part of a strategic realignment in response to shifts in the German biogas market and amendments to the EEG. In conjunction with the name change, a sister company, AC Agrar, was founded in 2013 to manage the entire raw material supply chain sustainably. This included purchasing and leasing land in Germany, Romania, and Russia for the cultivation of crops, aiming to balance the production of energy crops and food. Despite its significant operational footprint and a substantial private equity investment of €60 million in May 2009 from investors including Halcyon and Altima Partners, the company faced financial difficulties. In September 2014, AC Biogas GmbH filed for insolvency at the district court of Münster.