Financial Advisor in investment agreement between Meva Energy's and Just Climate
In February 2023 it was announced that the climate fund Just Climate has invested EUR 30m and acquired a stake as the largest owner of the Swedish energy technology company Meva Energy. SEB served as an adviser during the entire process and helped execute the transaction.
Meva Energy has developed a technology that is based on using fine fraction feeds of biomass, such as sawdust or other industrial residues, and driving them through a reactor that converts them to renewable biogas. This can then be used to produce heat or electricity.
The company has contracts to instal two plants. One will be installed adjacent to an Ikea furniture factory in Zbaszynek, Poland. The plan is to use residual sawdust from furniture production to generate electricity for the plant.
“The factory generates 100.000 tonnes of waste per year, for which Ikea today pays a fee to haul off. By instead converting this waste to electricity, they will lower their costs and dramatically lower their greenhouse gas emissions. It’s a win-win for Ikea,” says Christoffer Beyer.
The other commercial contract is with the tissue producer Sofidel, which will use a Meva Energy reactor at its plant in Kisa, Sweden. The plan is to use biogas to produce heat for drying tissue in the production process.
Capital to finance investments
To finance these investments, Meva Energy needed capital. Since the company is still in the commercial scale-up phase, it was not possible to obtain bank financing. Therefore, in autumn 2021 Meva Energy turned to SEB Corporate Finance in Stockholm for help in raising share capital.
Based on our advisory assignment we have helped the company lay the foundation for continued success.
Since SEB Corporate Finance in Oslo has a high level of expertise in the energy sector, a business team was formed consisting of Niklas Nordenswan, Project & Infrastructure Finance, who at the time worked for Corporate Finance Stockholm, Erika Björklund, Corporate Finance Growth, Stockholm, and Christoffer Beyer, Corporate Finance Oslo.
The investors are the London-based investment business Just Climate. It was started in 2021 by Generation Investment Management, a high-profile sustainability investment firm with former US Vice President Al Gore as co-founder and chairman.
The investment was completed in July 2022, but was not publicly announced until February 2023, when Just Climate announced three investments simultaneously. In addition to Meva Energy, the company has invested in H2 Green Steel and ABB E-mobility.
“Based on our advisory assignment we have helped the company lay the foundation for continued success,” says Christoffer Beyer. “Following the transaction Meva Energy has become a customer of SEB in Gothenburg, where we now have the opportunity to continue developing the customer relationship.”
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