July 23, 2025

A&G boosts its commitment to sustainability and circularity with a new investment in the water regeneration sector in Spain

Alternative Investments

[Press Release A&G Sustainable Infrastructure II F.C.R.]

A&G, through its A&G Sustainable Infrastructure II F.C.R. Fund, has closed its second investment in the water regeneration services sector in Spain through a strategic alliance with Altanea S.L., which will take shape in Regeneraqua S.L., a recently established company.

Regeneraqua, which specialises in providing water regeneration services and solutions to public and private companies, was created with the aim of positioning itself as a key player in a context of growing water stress in the country. The initiative comes at a critical time, with more than 75% of Spain's territory at risk of desertification and multiple river basins in a state of emergency at the start of 2025. Despite these challenges, the use of reclaimed water remains limited and is concentrated in only a few areas of the country. Spain currently has more than 1,400 wastewater treatment plants (WWTPs), but only 27% of them have tertiary treatment that allows for regeneration. In total, c.400 cubic hectometres are reused each year, representing approximately 13% of the total volume of treated water.

The company's strategy is aligned with the new EU Water Resilience Initiative, launched by the European Commission in 2024. The initiative positions wastewater regeneration as a key tool for combating water scarcity, promoting the circular economy and strengthening security of supply across the EU. In line with the European Regulation on minimum requirements for water reuse, the plan promotes water reuse beyond agricultural irrigation, encouraging its application in industrial, urban and environmental uses, and supporting public-private investments in regenerative infrastructure. In this way, Regeneraqua positions itself as a direct and structural solution to national regulations as well as a key partner for municipalities and public operators that must adapt to new legal requirements in a climatic emergency environment.

In addition to its local and environmental contribution, this type of infrastructure offers a real alternative to ensure water supply to critical sectors such as agriculture, industry and urban and recreational uses. Regeneraqua is positioned as an essential part of the transformation of the sector, which allows for investments of more than €100 million, deploying technological and operational solutions that enable the reuse of wastewater and industrial water on a national scale as well as replacing supplies that currently come from supply networks and aquifers.

With this transaction, the A&G Sustainable Infrastructure II F.C.R. Fund closes its second investment after participating, together with Dehesa Partners, in a portfolio of land covering more than 1,300 hectares, intended for the leasing of renewable projects worth more than €35 million.

In this way, A&G reinforces its commitment to investing in verticals focused on sustainability and circularity as well as impact investing. Through its investments in essential infrastructure, it generates a tangible impact on the country's environmental and social future.