Crop Energies takes minority stake in solar start-up East Energy

• German renewable ethanol manufacturer CropEnergies AG (ETR: CE2) is investing up to EUR 8 million (USD 8.00 m) in Rostock-based renewables start-up East Energy GmbH which plans to build ground-mounted solar parks in the northeast of the nation.

Under the deal, CropEnergies will offer the capital in the form of cash money contributions as well as shareholder lendings and also take a 25% rate of interest in East Energy's share capital, the latter claimed on Thursday.

The capitalist is intending to increase its stake in East Energy progressively as well as depending upon the projects, it stated in a separate declaration.

East Energy, founded in 2020, intends to establish and run subsidy-free solar parks with an integrated capacity of 1 GW across northeastern Germany by the end of 2024. The clean power from the plants will be used for the manufacturing of hydrogen, renewable fuels and also warm.

Currently, the start-up is collaborating with local utility Stadtwerke Finsterwalde GmbH on a joint project to create regarding 3,000 tonnes of green hydrogen a year. The gas will be used to decarbonise the district home heating of a city in Brandenburg as well as produce biomethanol.

Talking about the collaboration with CropEnergies, East Energy's managing director Dirk Petschick highlighted the lasting know-how the new significant investor has in the building and construction and operation of huge industrial plants.

"As Europe's largest manufacturer of renewable ethanol, CropEnergies likewise has the monetary strength to help know our ambitious investment projects," Petschick added.