Selected RegEnergy fund: An investment in the future of food production

torsdag, 14. november 2024

The Selected RegEnergy fund offers a unique opportunity for investors looking for a financially strong return while supporting the green transition in food production.

The fund is based on a circular concept, where waste energy from industry becomes a valuable resource in food production. The fund’s first project is a large greenhouse of 100,000 m² in Frövi, Sweden, where surplus heat from paper production at a nearby paper manufacturing plant is used for growing tomatoes. Thus, this project is a good example of the fund’s core principle: to utilize existing resources and create sustainable, local production.

In this video, you can meet Chief Sales Officer of Selected Group, Simon Lander, and hear him introduce the Selected RegEnergy fund in this video.

You can see the video via this link.

From waste heat to tomato production

The greenhouse in Frövi is designed to deliver over 8,000 tons of tomatoes per year, which corresponds to about 10% of Sweden’s total tomato consumption. The greenhouse was completed in May 2024, and in August of the same year, the first tomatoes were sent to stores in ICA supermarkets across Sweden. You can read more about this here.

By utilizing surplus heat from the nearby paper mill Billerud, the greenhouse is heated by a closed pipe system that pumps the heat that would otherwise be wasted directly into the greenhouse. Once the heat has created the ideal climate for the tomato plants, the cooled water is sent back to the factory – a process that reduces CO₂ emissions and ensures efficient resource utilization.

The project in Frövi has made a 20-year heat supply agreement with Billerud, which ensures access to cheap heat. This agreement gives the project in Frövi a significant competitive advantage, as the heat is both obtained more cheaply and secured in a market characterized by energy challenges.

The greenhouse itself is an engineering feat. With 5,000 glass panes, nearly 10,000 lamps, and over 400 kilometers of pipes that serve both as heat discharge and tracks for picking carts, the greenhouse is tailored to optimize the growth conditions for the tomatoes.

An example of the good collaboration between private companies and public authorities

The fund’s first project not only represents a cost-effective way to grow food, but it also supports Sweden’s ambition to become less dependent on imported tomatoes and strengthens food security through local production.

For this reason, the project and the Selected RegEnergy fund have also received strong support in Sweden. Here, the project in Frövi is highlighted as a model for how local communities and industry partnerships can work together on sustainable development. In collaboration with local authorities, the project has already resulted in 100 new jobs and contributed to structural changes in the community, including the development of transport infrastructure and housing options. Initiatives like these highlight the project’s social responsibility and demonstrate how private investments can create positive spillover effects for both the community and the employees.

The UN’s Sustainable Development Goals and an Article 9 fund

The selected RegEnergy fund is an Article 9 fund, and the project in Frövi meets several of the UN’s Sustainable Development Goals, for example in economic growth with the creation of 100 new jobs as well as responsible consumption and production.

Selected RegEnergy – more than just an investment

Selected RegEnergy is more than just a financial investment. The fund is an opportunity for investors who want to contribute to sustainable food production, efficient energy use, and strengthening the local community. With the Frövi project as the first of many, the fund demonstrates how circular and sustainable principles can become a driving force for both economic growth and a greener future.

The Selected RegEnergy fund offers an average expected annual return (IRR) of +15% over an investment horizon of 10 years, and the project has a minimum investment of 1,000,000 DKK.

Selected RegEnergy’s risk classification is 6 out of 7 according to the fund’s Key Information Document (KID), and you can read the document with central information here.

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