(Bloomberg) -- First Sentier Investors is considering a sale of French district-heating operator Coriance in a deal that could value the company at as much as 1.5 billion euros ($1.5 billion), people with knowledge of the matter said.

The investment firm is working with an adviser and may start the sale process by the end of the year, the people said, asking not to be identified because the information is private. Coriance is expected to mostly attract interest from private equity investors with funds specialized in infrastructure, some of the people said. 

Deliberations are at an early stage, and details may change, the people said. The valuation could be affected by rising interest rates, one person said. 

Representatives for Coriance declined to comment. First Sentier, which is owned by Mitsubishi UFJ Financial Group Inc., also declined to comment. 

Plants that burn wood and organic waste to heat and power housing or manufacturing have attracted interest from investment funds in recent years because they provide steady returns thanks to long-term contracts. The French government has been encouraging the development of district and heating cooling networks, especially when they use renewable fuels, as part of its ambition to conserve energy and curb carbon emissions.  

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Coriance, which was created by former French gas monopoly Gaz de France in 1998 to manage geothermal networks in cities near Paris, has since expended into power and heat generation based on biomass and waste. First Sentier bought Coriance from KKR & Co. for an undisclosed sum in 2016.  

Coriance had more than 325 million euros in revenue last year, according to its website.  

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