Crop Energies takes minority stake in solar start-up East Energy
The 10-MW Garzau-Garzin solar park in Germany. Image Energiekontor AG.
German renewable ethanol producer CropEnergies AG (ETR:CE2) is investing up to EUR 8 million (USD 8.00m) in Rostock-based renewables start-up East Energy GmbH which plans to build ground-mounted solar parks in the northeast of the country.
Under the deal, CropEnergies will provide the capital in the form of cash contributions and shareholder loans and take a 25% interest in East Energy's share capital, the latter said on Thursday.
The investor is planning to increase its stake in East Energy gradually and depending on the projects, it said in a separate statement.
East Energy, founded in 2020, aims to set up and operate subsidy-free solar parks with a combined capacity of 1 GW across northeastern Germany by the end of 2024. The clean power from the plants will be used for the production of hydrogen, renewable fuels and heat.
Currently, the start-up is working together with municipal utility Stadtwerke Finsterwalde GmbH on a joint project to produce about 3,000 tonnes of green hydrogen a year. The fuel will be used to decarbonise the district heating of a city in Brandenburg and produce biomethanol.
Commenting on the partnership with CropEnergies, East Energy's managing director Dirk Petschick highlighted the long-term expertise the new major investor has in the construction and operation of large industrial plants.
"As Europe's largest producer of renewable ethanol, CropEnergies also has the financial strength to help realise our ambitious investment projects," Petschick added.
Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.