Taaleri invests in Ren-Gas

Translation: Original published in Finnish on 12/17/2025 at 1:19 pm EET.

Taaleri announced on Wednesday that it has invested in the Finnish company Nordic Ren-Gas Oy (Ren-Gas). Ren-Gas develops Power-to-Gas (P2G) solutions based on renewable e-methane production to reduce emissions from heavy transport and maritime traffic. The company aims to build an extensive network of P2G production plants across Finland in cooperation with local energy companies. The financing round totals 16 MEUR and included, in addition to Taaleri, Tesi, Allianz, and Ilkka Herlin's investment company. Taaleri did not disclose its share of the funding round, but we believe it to be around 5 MEUR.

First investment under the new strategy

The investment made now is the first balance sheet private equity investment under the new strategy updated in the fall. The company's strategy is to make opportunistic private equity investments from its own balance sheet in sectors where the company can bring more than just capital to the table. The company aims for an annual return of over 15% on its balance sheet PE investments. We believe the investment made is well in line with the current strategy. Further investments are also possible if the company progresses in line with its targets. We also consider it possible that Taaleri could offer its clients the opportunity to invest in individual facilities in the future, for example, through a fund (cf. Fintoil and Biochar).

Progress on the new strategy is important

Compared to the company's own balance sheet investments of around 50 MEUR, the investment now made is not particularly large, and it does not affect our forecasts. The success of the investment will likely be seen in the next decade, as the construction of the plant network targeted by Ren-Gas will naturally take a long time. At this stage, we are neutral on the investment itself, but we consider it important for the company to progress with its new strategy. The execution of the company's strategy was very slow during the previous strategy period, and the company was very passive, especially regarding balance sheet investments. One key reason for the significantly low share price relative to the sum-of-parts valuation is precisely the ambiguity surrounding the utilization of the company's balance sheet assets. As the own-book investment activity becomes more active, this uncertainty will diminish, and it will be easier for investors to value the assets on the balance sheet. We have explained Taaleri’s strategy and balance sheet investments in more detail in our CMD comment.