ING to fund €100mn into Sustainable Investments
ING Group, the Dutch banking and finance firm, has announced the launch of Sustainable Investments.
The company has committed €100mn (US$122.4mn) of capital into the initiative, that aims to support ‘scale-ups’.
Sustainable Investments will use a buy and build strategy to support sustainable opportunities with innovative business models, initially with the Benelux region.
The opportunities will also have a successful track record that will allow ING to aid their organic expansion.
The project is part of the firm’s wider strategy for sustainability, aiming to catalyse and accelerate sustainable businesses.
ING are particularly focusing on businesses in areas of energy transitions, circular economy, and water.
To diversify the firm’s portfolio, the total capital will be invested over a period of three years.
“Sustainability has become a strategic priority and board room topic for many of our clients,” said Mark Weustink, Director within ING’s Corporate Investment Team, and Leader and Manager of Sustainable Investments.
“Our commitment of risk-bearing capital, ranging from junior debt to ordinary equity, enables ING to fill a client need and add to our overall sustainable finance strategy.”
“This step enables ING to support our clients who are proactively making changes in their business models to adapt to a more sustainable and energy-friendly way for the future, and further support them throughout their journey.”
“We are very keen to make this initiative a success for our clients and will thoroughly review every opportunity we receive.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.