CropEnergies, a manufacturer of sustainably produced biofuels, announced that they had acquired a 25% stake in the German renewable energy startup East Energy.

They intend to invest up to €8 million (~$7.9 million) in this first step.

East Energy plans to build and operate subsidy-free ground-mounted photovoltaic systems totaling around 1GW until the end of 2024 in north-eastern Germany under the brand name ‘Sun2Grid’. The green electricity generated will be used to produce green hydrogen, renewable fuels, and heat at suitable locations with power plants under the brand ‘Sun2Gas’.

“In CropEnergies we have found a strong partner who shares our holistic corporate approach from the generation of green electricity to the production of green hydrogen and green methanol as well as green heat supply and who brings the necessary long-term expertise in the construction and operation of large industrial plants. As Europe’s largest producer of renewable ethanol, CropEnergies also has the financial strength to help realize our ambitious investment projects. We look forward to working with an agile, progressive partner with a highly experienced and collaborative team,” said Dirk Petschick, managing director of East Energy.

CropEnergies plans to increase its shareholding in East Energy step by step. In addition to planning and setting up photovoltaic parks, East Energy is already working on concepts for producing green hydrogen from self-generated electricity and refining synthetic fuels as fuel for ships and aviation.

For the photovoltaic parks in East Energy’s pipeline, an investment volume of at least €600 million (~$595 million) is planned.

Last Month, Steag, a German power group, announced the acquisition of a stake in Solytic, a Berlin-based digital platform operator designed to enhance the performance of solar projects. The Berlin-based startup supplies cloud-based, manufacturer, and hardware-independent monitoring software for photovoltaic systems.

According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, in 1H 2022, there were 53 solar M&A transactions compared to 54 transactions in 1H 2021.