Report: Aloe to raise $400m for China gas deals

The Paris-based private equity firm reportedly intends to invest in Chinese coal bed methane fields.

Aloe Private Equity intends to raise $400 million over the next three years to develop coal bed methane resources in China, Jean-Pascal Tranie, the firm’s founder, to Reuters.

Coal bed methane is a form of natural gas extracted from coal beds. The gas occurs frequently in underground coal mining, where it presents a serious safety hazard.

Jean-Pascal Tranié

Aloe has completed research on the project and requires the funds to develop the fields, in order to extract the gas and sell it to gas pipeline companies. The firm also intends to remain invested in the project for five years or more, the report said.

In December 2008, Aloe injected €14.5 million ($18.8 million) into global recycling company Recupyl, alongside French fund of funds AGF Private Equity. It was Aloe’s second capital injection into the company, after its first investment in mid-2006.

In May 2008, Aloe acquired a 22.6 percent stake in AgroGeneration, an Eastern European agricultural commodities producer.

Aloe typically invests between €5 million and €25 million per deal, into companies which positively benefit society, socially and environmentally. The firm has offices in Paris, Beijing, Hyderabad and London.

Aloe did not reply to requests for comment at press time.