Aloe PE Raising $400 Million for Chinese Methane Project

HONG KONG (Reuters) – Alternative investment manager Aloe Private Equity aims to raise up to $400 million over the next three years to develop coal bed methane resources in China, its founder said on Tuesday.

Coal bed methane is extracted and produced directly from coal seams without having to remove the coal itself.

“We’re extracting methane trapped in coal mines. It’s a dangerous business, but it’s something we’re excited about,” said Jean-Pascal Tranie, founder of France-based Aloe Private Equity, which manages 180 million euros ($233 million) in assets.

The private equity firm has completed research on the project and hopes to start extracting gas next year.

“We will extract the gas and sell this to gas pipeline (companies). We have the results, and we’re planning to further develop the fields, which will require huge investment,” he said.

Aloe Private Equity, which is focused on China and India, intends to remain invested in the project for five years or longer.

“We don’t usually exit at IPO (initial public offering). We usually stay invested in the project until it matures,” Tranie told Reuters on the sidelines of the Green Investment Summit in Hong Kong.

Aloe has a 30 percent stake in Indian renewable firm Greenko Group (GKO.L), which is listed on London’s AIM bourse. Greenko has the capacity to generate up 90 megawatts of electricity from sustainable sources of energy.

The private equity firm is also invested in a 40 million euro recycling plant in Mumbai, which will start operating in August. (US$=0.7717 euros)

(Reporting by Leonora Walet, editing by Will Waterman)