AVG Invests in Arbaflame to Replace Coal in Power Plants with Biogas Pellet Solution

AVG Group Sarl (AVG) has invested USD 2,900,000 into Arbaflame AS, which has created a unique biogas pellet that can supplement or replace coal in boilers and power plants.

Arbaflame started in 2010 with testing solutions for substituting coal. Through extensive research, it found a low cost solution utilizing bio-feedstock (sawdust) to create the pellets required to replace or supplement coal.

The Arbaflame pellet allows coal operators to utilize existing operations to continue power production and to keep employees working at the facilities instead of having to fire them. The solution can reduce coal's carbon foot print up to 90 per cent.

Moreover, the investment was part of an internal funding round into a convertible note that can be converted at any time.

Additionally, Investinor, a Norwegian government funded LP, is also a co-investor in Arbaflame.

AVG has been focused on investing into power producing technology across a variety of green alternatives. It finds strategic technology that can help build the bridge between fossil fuels and the next age of energy supply, also known as the energy transition.

Commenting on the development, 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.”

AVG manages the Nordic ESG and Impact Fund SCSp, with an aim to invest in energy transition technology (Climate Solutions) from fossil fuels to green alternatives. The company invest into the local companies and then scales them globally.