Aquila Capital launched the Aquila Capital Energy Transition Fund I (ETF I), a €600m fund aimed at advancing Europe’s decarbonisation efforts through strategic infrastructure investments.

Supported by shareholder Commerzbank, the fund has made its first commitment of €50m to a 56 MW battery energy storage project in Germany, set to be operational by 2026.

ETF I, classified as an Article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR), targets investments in grid-scale battery storage systems, decentralised renewable energy solutions, and enabling infrastructure such as EV charging networks and industrial heating systems. The closed-end fund, designed for professional investors, seeks a gross return of 14-16% per annum, combining 6-7% annual cash distributions with long-term capital growth over a typical holding period of five to seven years.

Aquila Capital’s proprietary investment pipeline includes 2.9 GW of battery storage projects, providing a steady flow of high-quality opportunities. With an estimated €500bn annual investment needed to meet Europe’s energy transition goals, the fund aims to bridge the financing gap by directing private capital into critical projects.

Christian Holste, Head of Client Advisory and Business Development at Aquila Capital, highlighted the fund’s potential to generate strong financial returns while actively contributing to Europe’s sustainable energy transition. Markus Wandt, Chief Investment Officer at Aquila Capital, noted that ETF I represents a natural progression in the firm’s clean energy investment strategy, offering higher returns compared to core and core-plus infrastructure strategies.

The fund’s launch underscores Aquila Capital’s commitment to leveraging its expertise in clean energy to drive long-term value creation in the energy transition sector.