State-controlled energy group Ignitis Group said Wednesday it will sell a 49% stake in the Vilnius cogeneration plant to an infrastructure fund managed by Switzerland-based Quaero Capital for 120 million euros.
Ignitis Group said it signed a share purchase agreement Tuesday with the Quaero European Infrastructure Fund III. The transaction is expected to close in the second quarter, subject to regulatory approvals and other conditions set out in the agreement.
Ignitis Group CEO Darius Maikštėnas said the deal fulfils a requirement set by the European Commission when it approved 138 million euros in state aid for the project.
“First of all, we are implementing a requirement of the European Commission that was set when granting 138 million euros in support for the project. This means that the entire amount of support can be used to reduce heating prices for Vilnius residents,” Maikštėnas said in a statement. “Secondly, we have attracted one of the largest foreign direct investments in Lithuania in recent years.”
Sebastien Bourget, head of infrastructure and managing partner at Quaero Capital, said the Vilnius cogeneration plant is among the most efficient in Europe and plays a key role in Lithuania’s energy infrastructure.
“It helps reduce the amount of biodegradable waste sent to landfills and contributes to replacing fossil fuel-based generation facilities,” Bourget said. “Once again, we are demonstrating our confidence in Lithuania’s strong investment environment. This is a landmark project for our fund.”
In addition, Ignitis Group said it sold one share in the plant to Lithuania’s largest district heating supplier, Miesto Gijos.
After completing construction of the plant’s biofuel unit in May 2024, Ignitis Group announced plans to sell minority stakes of up to 49% in the Vilnius plant and other renewable energy companies it controls. The group first disclosed plans to sell a 49% stake in May 2023, saying the move was required under EU state aid rules.
In January 2018, the European Commission approved 138 million euros in additional support for the plant’s construction. The European Investment Bank provided a 190-million-euro loan for the project, while Ignitis Group contributed 60 million euros.
Ignitis Group and Finland-owned Gren Lietuva also jointly operate the Kaunas cogeneration plant, with Ignitis holding a 51% stake and Gren Lietuva owning 49%.
Quaero Capital, headquartered in Geneva with offices in Paris, Zurich, Luxembourg and London, manages 3.8 billion euros in assets. It focuses primarily on long-term infrastructure investments in energy, water, social, digital, telecommunications and transport projects across Europe, including the Baltic states. Its investors include pension funds, insurance companies and the European Investment Bank.
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