AVG Group Sarl (AVG), a climate change investment firm based in Norway, has invested $2.9 million (€2.4 million) in pellet manufacturer Arbaflame.
Arbaflame has developed a unique pellet using bio-feedstock (sawdust) that can supplement or replace coal in boilers and power plants. The pellets allows coal plant operators to continue power production more sustainably and keep employees working at the facilities.
The investment from AVG Group forms part of an internal funding round into a convertible note that can be converted at any time. Investinor, a Norwegian Government-funded limited partnership, is also a co-investor in Arbaflame.
AVG is focused on investing in power-producing technology across a variety of green alternatives. The firm finds strategic technology to build the bridge between fossil fuels and the next age of energy supply, i.e. the energy transition.
Karl Andersen, CEO of AVG, said: “Arbaflame fits strategically into our Nordic ESG and Impact theme while delivering a well needed alternative solution to the coal industry.”