Biomass Energy projects Equity is key! Nationaal Groenfonds - Emile - - PowerPoint PPT Presentation

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Jan 02, 2024 275 likes •433 views

Biomass Energy projects Equity is key! Nationaal Groenfonds - Emile Peters 10 October 2017 SDE Subsidy committments Biomass growing: Source: https://www.rvo.nl/subsidies-regelingen/sde/feiten-en-cijfers IPFA Biomass conference- 10 October

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Biomass Energy projects – Equity is key!

Nationaal Groenfonds - Emile Peters

10 October 2017

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SDE Subsidy committments – Biomass growing:

Source: https://www.rvo.nl/subsidies-regelingen/sde/feiten-en-cijfers

IPFA Biomass conference- 10 October 2017

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Substantial biomass projects to be developed
In 2016 alone: biomass expectations (per SDE) > €3.2bln.
This will require capital investment of > €400mln (est.)
Remember: that is 2016 alone!

IPFA Biomass conference- 10 October 2017

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SDE biomass commitments expected to grow further:

Source: https://www.rvo.nl/subsidies-regelingen/sde/feiten-en-cijfers

IPFA Biomass conference- 10 October 2017

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Conclusion:

Let’s assume: every project requires at least 20% equity
Then 2016 biomass project developments alone require

equity of (20% * €400=) €80mln.

Our experience: equity is often the bottle neck
Raising equity delays projects

IPFA Biomass conference- 10 October 2017

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IPFA Biomass Conference 2017 - Amsterdam

SDE Realisation rate:

Withdrawn Being developed Withdrawn Realised

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Complications with equity raising:

Mitigation project risks – takes time & money:

Source: Triple Bridge BV

IPFA Biomass conference- 10 October 2017

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Plus: risk of dilution

Equity investors require substantial investment

return

This dilutes project developers
Do all for nothing, or very little

IPFA Biomass conference- 10 October 2017

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Solution: mezzanine financing

Subordinated loans
Capital for senior lenders
Reasonable terms and interest rate
This is what Nationaal Groenfonds can bring

IPFA Biomass conference- 10 October 2017

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Purpose Nationaal Groenfonds:

IPFA Biomass conference- 10 October 2017

Green living environment (Nature)

Years of experience Financial support Very successful: >700mln in financings 345ha nature created in 2015 136k tons CO2 emissions avoided

Network and reputation

Thanks to this background:

Strong name
Strong network

Strength is connecting government policy with private enterprise Through smart financing

Energy transition

Necessary for enviroment Requires connecting government policy with market initiatives And smart financing Natural role for GRF

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Connecting government and private sector

Social return / Sustainability Financial return and risk

Government Private sector Familiar theme for GRF (also key in nature development)

IPFA Biomass conference- 10 October 2017

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GRF Task in energy transition:

Energy transition

Risk bearing capital Project support Access to network vof financiers

IPFA Biomass conference- 10 October 2017

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Energy transition

Acceleration Development Connection

GRF central themes:

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Thanks for your attention

more info: www.nationaalgroenfonds.nl