“The first quarter of 2025 has been focused on creating value and crystallising some key milestones across our portfolio companies. We welcomed new executive members to two of our Finnish energy companies. We also completed the development of some of our UK rolling stock fleets, and we generated incremental value from environmental, social and governance (ESG)-related initiatives across our portfolios. We touched on this important topic during the Infrastructure Investor Network conference held in Berlin in March, where our Head of Sustainability, Ruairi Revell, provided a pragmatic approach to ESG and impact investing as part of his panel.”
Dominic Helmsley, Head of Economic Infrastructure
Investment updates
Management team updates
We are pleased to welcome three new management team members to our Finnish investments, Loimua and Etelä-Savon Energia Oy (ESE).
The Aberdeen asset management teams have led the recruitment process, with the support and guidance of the respective boards, co-shareholders and Aberdeen’s local senior advisers. The appointments are a crucial part of the ongoing efforts to support sustainable growth of our Finnish energy companies. They also demonstrate our ability to attract exceptional talent, given our leading position in the market.
- Timo Piispa, Loimua CEOTimo joins Loimua from Fortum, Finland’s largest utility company. Timo has a wealth of experience and a proven track record of managing companies in the energy sector. He also has experience in direct heating and cooling.
- Mika Riekkola, Loimua COOMika is a seasoned professional in the operations and maintenance of energy businesses. He also has expertise in sales, which will help Loimua grow in the energy services business.
- Janne Saarela, ESE CEOJanne joins ESE from a similar regional energy business. His strong operational acumen has allowed him to deliver solid performance in the energy-production and district-heating sectors.
“As active asset managers, building strong management teams is one of our key priorities; it is paramount to delivering our value creation plans. We are proud to welcome three leaders to our Finnish portfolio companies who will bring a wealth of relevant expertise to unlock further value and growth for Loimua and ESE."
Soti Calochristos, Senior Investment Director
Rolling stock fleets entering passenger service
Two of our rolling stock fleets have made good progress over the quarter, with additional units entering into passenger service on some key routes:
- Rock Rail South Western
Our new fleet of 90 Arterio trains has been accepted from the manufacturer and final milestone payments have been paid. Some trains are already in operational service on the network. Further trains are being introduced on additional routes, as more drivers complete their competency training. More units are expected to come into service throughout the year, as driver training increases. This will allow our trains to service the suburban network of southwest London and surrounding areas. The Arterio trains offer more capacity, quicker journey times, better reliability, and modern amenities such as Wi-Fi, real-time information systems, and accessibility features. Moreover, our Arterio trains use regenerative braking to reduce energy consumption by up to 30%, making them more sustainable than the older fleet they are replacing.
- Rock Rail West Coast
Key milestones have also been reached with our fleet of 23 Evero trains. We now have nine bi-mode units and five electric units in passenger operation on the West Coast network. They service key destinations from London, such as Birmingham, Liverpool, and North Wales. The bi-mode units have the ability to switch from diesel to electric power when under the electricity lines, which significantly reduces their carbon emissions. Similar to our South Western fleet, new and improved features will also include more seats, improved Wi-Fi, wireless charging, ergonomic seat designs, larger luggage racks, real-time information systems, and better accessibility features.
Some further information on the features of our trains can be found at the links below:
“We are pleased to reach this milestone on our South Western and West Coast fleets. Our new trains provide more comfortable and sustainable travel, significantly cutting carbon emissions compared with the trains they are replacing. We are committed to delivering safe and reliable essential infrastructure to local communities. And we appreciate the participation and efforts from all parties in completing these fleets.”
Nick Flynn, Investment Director
Outokummun Energia (OKE) – delivering on its goals to reduce combustion fuels from heat production
In February 2025, our Finnish electricity distribution and district-heating platform OKE signed a 10-year fixed-price heat offtake contract with data centre developer E-heat. Already a fully renewable network, this goes one step further in supporting the energy transition with OKE’s need for combustion fuels reducing by around 50%. This now allows OKE to stop using its biomass boiler between four and six months per year.
This offtake contract is a perfect example of how sustainability/ESG initiatives can create additional profitability and long-term value for our companies. The project combines a cheaper fuel source, less need for capital expenditure investment, and reduces combustion fuel usage. This exemplifies how Aberdeen strives to integrate ESG factors into its commercial decisions and strategic initiatives in order to future-proof our companies.
In 2025, we expect to further reduce combustion fuel usage with investment in other clean energy solutions at the production site. Watch this space!
Auris Energy – providing the essential link between consumers and renewable fuels
Auris has continued to invest in innovative renewable solutions, by adding a container feeding point for biogas and synthetic e-methane in Mäntsälä, our vertically integrated biogas facility. The project is the first step in enabling biogas and synthetic methane production plants outside of the gas network to access the international gas market, with Auris as their main operating partner.
The investment is part of Auris Energia's goal to accelerate Finland's clean transition in an efficient way. It does this through electrifying the industry, developing a sustainable energy infrastructure, and leveraging its existing network.
The effects of the virtual gas network are many times greater than the investment (around €1 million). Indeed the network enables further investment in new biogas plants, green hydrogen and synthetic methane production plants by providing those plants with access to the Finnish and European gas markets, making them more commercially viable operations.
“Sustainability initiatives are fully embedded in our value creation strategy. OKE and Auris are recent examples of how those initiatives come to fruition. They prove, once again, that enabling the energy transition can also create financial value for our investors.”
Maciej Tarasiuk, Head of Investments
Sustainability initiatives
A green lease of life
Maciej and Ruairi recently spoke to Infrastructure Investor for its 2024 Annual Review about opportunities in the transport sector. They discussed the relative merits of transport sub-sectors for mid-market strategies, especially in the leasing space. They also discussed the parallels between opportunities in rail and ground support equipment (GSE) for aviation. They also touched on the potential scale of the market and the significant role investors can play in supporting the decarbonisation of a sector that has, to date, lagged behind others.
You can read the full interview here.
Performance and disclosures for 2024
We have been busy working with management teams to finalise sustainability disclosures for 2024, which will be published in our first-quarter managers’ reports (earlier for SFDR funds). Highlights include an impressive 29% reduction in emissions from heat production at Loimua, driven by an increase in renewable fuel to 92% of their mix. Elsewhere, our Sorriso biogas platform in Italy generated over 80 GWh of renewable electricity in 2024, the CERI solar portfolio in Poland generated 383 GWh, and aventron in Norway generated 403 GWh.
Together, this is equivalent to over 274k tonnes of avoided carbon dioxide emissions.
Keep an eye out for our first-quarter managers’ reports for full details, and please reach out with any questions.
Team updates
We are pleased to announce the promotion of two of our investment team members:- Soti Calochristos is promoted to Senior Investment Director. Soti has been a valued member of our team since 2019. He has been leading a number of investments across our Finnish platform (including Loimua, Outokummun Energia and Etelä-Savon Energia). He has also been leading our first Spanish investment, DIGI Andalucia. More recently, Soti has been leading the expansion of our Italian biomethane business, Sorriso.
Hanqin Fei is promoted to Senior Investment Analyst. Hanqin joined our team in 2023. He has proven to be an integral part of the team, recently focusing on our UK fibre business, Airband, and Etelä-Savon Energia.
Events
Easter cheer
The asset management team of Auris Energy, our Finnish energy services company, visited a key client’s factory site as part of its last board meeting – involving some tasty Easter treats! Actively engaging in discussions with our portfolio companies’ clients helps us learn more about their needs. Alongside our management team, we focus on improving our services to meet client demands, ensuring we remain partners for years to come.
As part of our asset management practice, we actively seek to meet our companies’ partners. This ensures continued collaboration. Often this involves working with industry experts and senior adviser networks as we leverage the platforms we have built (in this case in Finland) to benefit all stakeholders, from knowledge-sharing to industry-wide lobbying efforts.
Contact Us
If you would like to find out more, please contact one of our investment specialists below:
Dominic Helmsley, Head of Economic Infrastructure
dominic.helmsley@aberdeenplc.com