Apollo acquires majority stake in pellet producer Graanul
With funds managed by Apollo’s affiliates, the company has agreed to invest in the largest producer of sustainable wood pellets in Europe, and one of the largest producers globally.
Since its inception in 2003, Graanul has pioneered some of the most advanced processes and technologies in the biomass and bioenergy industry, said Apollo, and provides a critical baseload renewable energy resource.
Through its 12 state-of-the-art pellet production plants located in the Baltics and the US, Graanul manufactures sustainable wood pellets, enabling baseload electricity and heat generation to replace coal and balance intermittent renewable energy sources like wind and solar.
Graanul also operates six CHP plants in Estonia and Latvia and is one of the largest producers of renewable energy in the Baltic region, having generated more than 17% of all renewable bioelectricity in Estonia in 2020. The highly energy-efficient CHP plants power Graanul’s manufacturing operations.
Raul Kirjanen, chairman and CEO of Graanul, said: “In Apollo, we will have a sophisticated strategic investor who is not only intimately familiar with our business but also understands the complexities and the unique value opportunities present in the bioenergy space today.
“Our operations and activities have always been – and will continue to be – designed for and dedicated to creating a globally sustainable and renewable energy system to replace fossil fuel emissions.
“Our team and people, as well as our corporate structure and operations, are a highly valued foundation to the exciting growth ahead with Apollo. New capital and global connectivity will provide new international opportunities for Graanul and its employees as we build on the company’s many achievements together.”
“With the accelerating energy transition in Europe and globally, baseload renewable energy sources such as biomass are a critical and enabling piece of the puzzle, by providing dispatchable electricity and heat to must-run facilities,” said Apollo’s Brad Fierstein.
“Raul and the Graanul team are best-in-class in this industry and have done an excellent job scaling and positioning the business to play a critical role supporting this energy transition, as a reliable supplier to its customers, with proven sustainability.”