Sustainability-focused investment manager Mirova and BNP Paribas Asset Management (BNPP AM) announced that they have acquired a majority stake in French renewable energy developer Arkolia, with an investment by the asset managers of more than €200 million aimed at funding the companies’ growth.

Founded in 2009, Mauguio-based Arkolia is one of the largest independent for rooftop photovoltaics on the French market, and is also active in areas including ground-mounted solar, wind power and biogas, with a total installed capacity of more than 560 MW in operation, as of the end of 2023.

Arkolia said that the new capital will be used to finance its portfolio of projects, expand its coverage, and increase its production capacity, with a goal to reach 1.5 GW by 2030.

Jean-Sébastien Bessière, Arkolia co-founder and President, said:

“This strategic alliance represents much more than just a new chapter in our story; it is the beginning of a whole new book filled with challenges and opportunities. This has now been achieved with a consortium comprising two leading French institutional partners. This alliance strengthens our ability to fulfill our founding promise: achieving energy independence by democratizing and decentralizing renewable energy.”

Mirova will invest in Arkolia through their Mirova Energy Transition Fund 6 (MET6), launched last year, and targeting €2 billion in commitments, with investments focused on energy transition infrastructure, and supporting decarbonization in Europe.

Raphaël Lance, Head of Energy Transition Funds at Mirova, said:

“We strongly believe that Arkolia can consolidate its leadership position in the French rooftop solar which is a fast-growing sector to decarbonise the decentralised energy production and requires proven scaling capabilities that the company has built over the years.”

BNPP AM’s investment will be made through its Low Carbon Transition Infrastructure Equity Fund, marking the fund’s second investment following its launch earlier this year. Managed by BNPP AM’s Private Assets division, the fund invests in low-carbon infrastructure projects in Europe through acquiring minority stakes in companies in energy transition-related areas, such as the development of renewable energy projects, transport decarbonization, circular economy and carbon capture.

Rodolphe Brumm, Head of Infrastructure Private Equity at BNP Paribas Asset Management, said:

“We are delighted to partner with Mirova, as well as Arkolia management team to support the company’s ongoing journey as a leader in the distributed energy generation space. This is the Low Carbon Transition Infrastructure Equity Fund’s second investment and part of BNPP AM’s overall strategy of investing in equity in leading companies contributing to a low carbon economy in Europe.”