Santander CIB invests in EIT InnoEnergy to accelerate clean energy innovation
This strategic move, alongside other key investors, aims to accelerate innovation in clean energy and support InnoEnergy's startup ecosystem.
Santander Corporate & Investment Banking (CIB), a global leader in renewable energy financing, has announced its participation in a EUR 140 million investment round for EIT InnoEnergy, a pioneer in sustainable energy. This strategic move, alongside other key investors, aims to accelerate innovation in clean energy and support InnoEnergy's startup ecosystem.
The investment aligns with Grupo Santander's overarching strategy to maintain a leadership position in sustainable technology, renewable energy advisory services, and financing. The capital raised will be instrumental in the growth of EIT InnoEnergy's portfolio, the expedited launch of new startups, and the expansion of the company's presence in the United States.
Since forging a collaboration agreement with EIT InnoEnergy in April 2022, Santander CIB has actively supported various InnoEnergy startups. This includes providing guidance to France's largest battery manufacturer, Verkor, in its partnership with Renault, as well as financing for Germany's leading hydrogen power solutions company, HPS.
EIT InnoEnergy presently boasts a portfolio of 200 companies, three of which have achieved unicorn status. These companies are poised to generate €110 billion in revenue and collectively save 2.1 gigatons of CO2 equivalent by 2030. To date, these companies have successfully secured €9.7 billion in investment. This private placement round is set to propel InnoEnergy's pivotal role in actualizing Europe's ambitions to achieve its 2050 net-zero objective, a milestone established in climate law.
Lucas Arangüena, global head of Green Finance for Grupo Santander and global head of ESG for Santander CIB, noted, "As a world-leading advisor and financier in Climate Tech, this partnership enables Santander to accelerate and de-risk the development of hundreds of EIT InnoEnergy portfolio companies." He emphasized Santander's commitment to fostering a shift to a low-carbon economy and achieving the Sustainable Development Goals.
Mikel Lasa, CEO of EIT InnoEnergy Iberia, highlighted the success of the investment round, with both new and existing strategic partners participating. The funds raised will double the impact of InnoEnergy's initiatives, making a significant contribution to advancing the energy transition in Europe and beyond.
Santander continues to lead in renewable energy financing, with over EUR 5.161 billion mobilized across 78 deals, capturing a market share of 4.38%, according to Infralogic. The acquisition of an 80% stake in WayCarbon Soluções Ambientais e Projetos de Carbono, a Brazil-based ESG consultancy leader, has expanded Santander CIB's product portfolio and enabled the development of proprietary carbon projects.
Grupo Santander has identified six critical trends essential to achieving a net-zero transition: hydrogen, batteries, carbon capture and storage, biofuels and the circular economy, clean mobility, and food tech. The Group has pledged to mobilize EUR 220 billion in green finance between 2019 and 2030, and as of June 2023, Santander CIB had already raised and mobilized EUR 98.6 billion.
In 2022, Santander Asset Management (Santander AM) and EIT InnoEnergy collaborated to launch the Santander InnoEnergy Climate Fund, providing private banking clients and institutional investors access to a portfolio of companies contributing to the circular economy, renewable energy, energy storage and efficiency, transport and mobility, smart buildings and cities, energy distribution networks, and hydrogen.
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