ABP invests in Swedish energy supplier Stockholm Exergi

The Dutch pension fund ABP has invested in Swedish energy giant, Stockholm Exergi (SE), taking a 20.5 per cent stake.

The company is the largest supplier of heating and cooling in Sweden and one of the largest energy companies in Scandinavia. ABP, which made the investment through its manager APG, has invested €1bn in the company for its 20.5 per cent share.

It has collaborated with PGGM, AXA and two Scandinavian pension investors as part of its investment. Together, the consortium bought 50 per cent of the shares in the company.

APG senior portfolio manager, Carlo Maddalena, said: “SE supplies heating and cooling to approximately 800,000 households in Stockholm. It is an important company for Sweden. The Stockholm Municipality owns the other 50 per cent of SE.”

He added that SE is a “frontrunner” in sustainable heat supply for the Stockholm region.

“They are 100 per cent fossil-free; they have stopped using traditional forms of fossil fuels such as coal, oil and natural gas. They now use a wide range of energy sources, including biomass (but only wood leftover from other uses and certified to green standards), waste (but first reused and recycled to ensure compliance with EU regulations), renewable biofuels and heat recovery (e.g. recycled heat collected from data centres and sewage flows).”

It has set itself the target of being CO2 positive in four years' time and plan to achieve this by capturing and storing more CO2 than they emit.

“The plan is to safely store CO2 in empty oil and gas fields deep underground. This technology is called carbon capture and storage. SE is involved in a large-scale trial and wants to further roll out this technology in the near future,” Maddalena said.

    Share Story:

Recent Stories

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.