Ignitis Group sells 49% stake in Vilnius CHP to Quaero European Infrastructure Fund III
By Global Infrastructure Sherpa · Feb 25, 2026
Ignitis Group has agreed to sell a 49% stake in UAB Vilniaus kogeneracinė jėgainė (Vilnius CHP) to Quaero European Infrastructure Fund III, a fund managed by Quaero Capital SA, for EUR 120 million. The value of 100% of Vilnius CHP‘s equity amounts to EUR 244 million.
Deal Analysis
Ignitis Group's sale of a 49% stake in Vilnius CHP to Quaero European Infrastructure Fund III for EUR 120 million represents a significant transaction in the European biomass energy sector. The deal values 100% of Vilnius CHP's equity at EUR 244 million, indicating a substantial investment in renewable energy infrastructure. This transaction allows Ignitis Group, a Lithuanian energy company involved in power generation and distribution, to partially monetize its investment in the 93 MW biomass-fueled Vilnius CHP, potentially freeing up capital for other strategic initiatives. Quaero European Infrastructure Fund III's acquisition demonstrates its commitment to investing in European infrastructure assets, specifically within the renewable energy space. Miesto Gijos is also listed as a buyer for one share.
The deal is notable for its size and the involvement of established players like Ignitis Group and Quaero Capital SA, the fund manager for Quaero European Infrastructure Fund III. The investment by a dedicated infrastructure fund underscores the attractiveness of biomass energy assets in the current market environment. This transaction could signal further investment activity in the Baltic region's renewable energy sector, as investors seek opportunities to deploy capital into sustainable infrastructure projects. The announced sale is pending finalization, with the signing and closing dates yet to be determined.
- Ignitis Group sells a 49% stake in Vilnius CHP to Quaero European Infrastructure Fund III for EUR 120 million.
- The deal values 100% of Vilnius CHP's equity at EUR 244 million.
- Vilnius CHP is a 93 MW biomass-fueled power plant located in Lithuania.
- The transaction highlights the attractiveness of biomass energy assets to infrastructure investors.
Market Context: The deal occurs within the context of increasing demand for renewable energy sources and growing investment in sustainable infrastructure across Europe. Biomass energy is a key component of the renewable energy mix, offering a dispatchable and reliable alternative to fossil fuels. The Baltic region is actively developing its renewable energy capacity to meet EU targets and enhance energy security.
Source Intelligence
KEY DETAILS
The EUR 120 million consists of EUR 110 million fixed and EUR 10 million conditional (earn-out) payment, which depends on Vilnius CHP performance. Quote: "It consists of EUR 110 million fixed and EUR 10 million conditional (earn-out) payment, which depends on Vilnius CHP performance."
“
Deal Size
The value of 49% of Vilnius CHP's shares acquired by Quaero Capital amounts to EUR 120 million.
“
Capacity
The total power capacity of Vilnius CHP is 93 MW, and the heat capacity is 239 MW.
“
Location
Ignitis Group has agreed to sell 49% of its shares in Vilnius CHP
“
Financials
Under the terms of the agreement, the value of 100% of Vilnius CHP‘s equity amounts to EUR 244 million.
“
Announcement
February 25, 2026
“
Signing
The share purchase and sale agreements are expected to be signed by the end of March 2026, after receiving the approval of the General Meeting of Shareholders of the Group to transfer the shares in Vilnius CHP.
“
COD
The construction project of Vilnius CHP was completed on 23 May 2024.
“
Expected Close
Transactions are expected to be completed in the second quarter of 2026, subject to regulatory approvals from Lithuanian and Latvian authorities and other closing conditions.
PARTIES MENTIONED IN SOURCE
I
Ignitis Group
seller
"Ignitis Group has agreed to sell 49% of its shares in Vilnius CHP"
Q
Quaero European Infrastructure Fund III
buyer
"it has agreed with Quaero European Infrastructure Fund III, a fund managed by Quaero Capital SA (hereinafter – Quaero Capital), on the sale of a 49% stake in UAB Vilniaus kogeneracinė jėgainė (hereinafter – Vilnius CHP) managed by the Group."
Q
Quaero Capital SA
investor
"Quaero European Infrastructure Fund III, a fund managed by Quaero Capital SA"
V
Vilnius City Municipality
"the cooperation agreement signed on 29 May 2017 between Vilnius City Municipality, the Group (then AB “Lietuvos energija“) and AB “Miesto gijos” (then AB „Vilniaus šilumos tinklai“), the Group has agreed to sell one share of Vilnius CHP to AB “Miesto gijos”."
A
AB “Miesto gijos”
buyer
"the Group has agreed to sell one share of Vilnius CHP to AB “Miesto gijos”."
high quality
Enriched Feb 27, 2026
Market Context
This deal is part of the Biomass sector in Lithuania.
1 of 30 Biomass deals tracked this month · Updated daily
Global Infrastructure Sherpa