Danish biogas firm Lundsby rescued from bankruptcy by CoreCapital and CIP

What's the deal? Danish private equity firm CoreCapitalDealroom has a profile for this one. Try Dealroom →, alongside Copenhagen Infrastructure Partners (CIP)Dealroom has a profile for this one. Try Dealroom →, is acquiring the business of bankrupt biogas developer Lundsby Renewable Solutions. CoreCapital is buying the assets from the estate and reviving the company under the familiar Lundsby name, with CIP joining as co-investor and continuing as a customer. Terms were not disclosed.

Why now? Lundsby Renewable Solutions declared bankruptcy in early October after losses of about US$10.3M over two years. The deal lets the company's specialists resume work from its headquarters in Løgstrup, near Viborg.

What's the endgame? The new Lundsby will continue to develop, build, and optimise biogas plants across the Nordics. It brings more than 30 years of experience and has worked on 52 biogas plants, including CIP's large project in Tønder.

"I'm really looking forward to being able to help many customers with what we do best," said chief executive officer Carsten Nielsen (translated from Danish).

What could go wrong? Reports say the revived company plans to avoid the riskier model of taking on full construction projects, emphasising advisory and service work instead. That caution follows the losses that sank its predecessor.

The signal: The rescue comes as investment in Danish biomethane continues — St1 BiokraftDealroom has a profile for this one. Try Dealroom → recently acquired Danish Bio CommoditiesDealroom has a profile for this one. Try Dealroom →, and plants such as Sindal and Vegger point to demand for capacity. The deal is less a growth acquisition than a sign that the sector's opportunity is real, but execution and project risk remain consequential.

Read more: renewablesnow.com

Image credit: Generated with Gemini