CapMan Infra has agreed on majority investment in Finnish solar energy company Skarta Energy.

CapMan Infra will own 60% and SkartaNYAB 40% of a joint venture they will establish together by the end of 2022.

The investment is the first of CapMan Nordic Infrastructure II fund, which was established earlier in 2022 with a target size of EUR 400m.

“We are very excited about this first investment of CapMan Infra’s second infrastructure fund. Skarta Energy is well-positioned to drive the necessary green transition and increase the security of electricity supply within our Nordic home markets,” says Harri Halonen, Partner at CapMan Infra, in a statement.

Only half a percent

Skarta Energy focuses on solar energy projects, which can be supplemented with wind power construction and hydrogen solutions.

The new joint venture will initially focus on solar energy in Finland, where solar energy accounts currently for only half a percent of all electricity produced in the country. The figure is expected to increase significantly as Finland is aiming to become fossil fuel free by 2035, notes Halonen.

”This has led to strong corporate and consumer demand and support for green electricity. We are very excited to partner with SkartaNYAB to develop the nascent Finnish solar market and build Skarta Energy into a leading independent power producer together,” Halonen adds.

The Oulu-headquartered Skarta Energy, which was established in 2021, aims to develop and operate approximately 500MW of energy production over the next five years. CapMan writes that the company has a strong pipeline of mainly solar energy projects with a combined production capacity of over 1.0 GW. It is currently developing its first utility-scale solar project in Utajärvi, North Finland, where construction for phase 1 is expected to start in late 2023.

CapMan’s investment strategies cover private equity, real estate and infrastructure. The company has more than EUR 4.9bn in assets under management.

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