Virta closes €85M funding to increase EVs’ impact on energy flexibility markets and accelerate growth in Europe and Asia-Pacific

Helen Ventures

Finland-based Virta Ltd, a global leader of the fast-growing Electric Vehicle charging platforms industry*, has secured new €85M growth funding. The funding round is among the biggest in the sector during recent years. The sum consists of €65M equity investment from Virta’s existing investors, led by the private equity firm, Jolt Capital, and co-invested by Future Energy Ventures backed by E.ON., Helen Ventures, Vertex Growth Fund, Finnish Industry Investment, Lahti Energy, Vantaa Energy, and Kotka Energy. 20 million euros will be received from Business Finland, which offers innovation funding for companies and research organizations.

Over 1 000 professional EV charging businesses in 35 countries run their EV charging services on Virta platform. Together, these charging network operators constitute one of the biggest public networks in Europe. Including roaming, the network enables EV drivers with access to over 350,000 charging points.

“The EV charging platform is mission critical for companies building global charging services. Our strong financial position enables us to secure the best growth capabilities for our partners,” says Virta CEO, Jussi Palola.

Virta and the EV charging industry are heading to the era of green hypergrowth

Virta’s growth has continuously surpassed the industry average, and in 2022, Virta Group’s annual revenue grew 112% to €39M (preliminary figures). As a result, Virta was ranked on the Financial Times 1000 Europe’s Fastest Growing Companies list for the fourth time in a row in 2023. With the fresh funding, Virta aims to grow its charging transactions by more than fivefold in Europe and the Asia-Pacific region by 2025.

Time to unlock hundreds of billions in energy sector savings with the help of EV’s

EVs are big batteries on wheels, and by 2030, Virta estimates they will represent up to 90% of the total battery storage capacity in Europe. Connecting this battery capacity to the energy system and adjusting EV charging consumption in real-time (demand-side flexibility) are seen as one of the biggest enablers for the world to successfully multiply the share of renewable energy production, lower the cost of electricity for consumers, and increase the energy system resilience.

According to a recent Smarten report**, full scale implementation of demand-side flexibility, including EV charging, will save up to €254.4B in grid infrastructure and peak power plant investments between 2023 and 2030, and 300 million tonnes in GHG emissions by 2030. In total, full deployment of demand-side flexibility could lead to a potential cost reduction for consumers of more than €71B per year on electric consumption by 2030.

“Today, Virta has one of the leading platform patent portfolios with focus on energy technologies such as vehicle-to-grid (V2G), autonomous vehicle charging, and operating complex billion-scale network operations. With the new funding, we are now ready to take the global lead in making EVs an integral part of energy flexibility markets,” says Palola. In the process, the Virta platform capacity is estimated to grow from the current ca. 2,000 MW to 12,000-15,000 MW, the size of 10 large nuclear power plants, by the end of 2025.

The funding round’s lead investor, Jolt Capital’s CEO Jean Schmitt, summarises the expectations and potential from the investor point-of-view: “Our strategy is to fund European growth deep-tech companies looking for a worldwide leadership. Virta has demonstrated a rare ability to combine hypergrowth, technology leadership and mature operations, enabling sustainable profitable scalability. We believe that Virta is now in pole position to win the race to platform market leadership in one of the fastest growing global industry sectors, ie EV charging and energy flexibility.”

“We continue to be impressed with the track record of Virta and the continued forward momentum in financial performance after a decade of supporting the team”, continues Mikael Myllymäki, Vice President and Head of Helen Ventures. “This latest funding round puts Virta in a great position to further capitalize on their proven platform as the EV market continues to grow. This includes Virta’s role as a key enabler in demand-side flexibility, which is a large theme in the energy transition.”

* Estimated number of charging points in Europe in 2025 compared to 2021 +475% from 0,4 million to 2,3 million and to 7,9 million in 2030. Sources: ACEA, ICCT, IEA, BNEF, DNV 2030 estimates.
** Demand-side flexibility in the EU: Quantification of benefits in 2030, September 2022, Smart Energy Europe and DNV.

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Herkules IV divests PTC to Interwell

Hercules Capital
On 21 April 2022, Herkules IV entered into an agreement to sell PTC, a global provider of downhole and wellhead technology products, to Interwell. Interwell is privately held provider of oilfield technology products, headquartered in Stavanger, Norway. Intwerell is owned by Ferd and the Interwell management.
PTC is a leading developer and supplier of premium gas lift and wellhead products that enhance well integrity, safety, reliability and productivity for oil companies. The company has a large, patent protected product portfolio developed in close relationship with customers facing well-related challenges offshore. Herkules has owned the company together with the founders and other employees.During Herkules IV’s ownership period, PTC has grown revenues from NOK 202 million in 2013 to NOK 502 million in 2021. In this period, the company has experienced two major industry downturns and a global pandemic that has had material negative impacts on the company.
In 2014-2016, the company experienced the first industry downturn during Herkules IV’s ownership. During this period, it was decided that the company was to continue to invest in developing and expanding its portfolio of unique technology products. In addition, the company was to invest in obtaining industry leading safety and quality certifications on its products. The decision to continue to invest during those challenging times has proven to a key factor in the company’s success since 2016. Since 2016, PTC has successful expanded its addressable market and gained momentum in several new markets

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Investment in TSE, an expert in Photovoltaic and Agrivoltaic development

Eurazeo

Eurazeo is investing in TSE through its Transition Infrastructure Fund. Bpifrance and investors from the Crédit Agricole group are also taking part in this €130 million fundraising round.

TSE was founded in 2016 and is a producer of solar energy in France. Its ambition is to meet the challenges posed by energy and ecological transition, partly by developing agrivoltaic projects through partnerships with major players in the world of agriculture. TSE is also recognised for its innovative agricultural canopy solution, and is the company that brought into service the Marville photovoltaic facility, the second-largest in France. TSE currently has 1.6 GW of projects at varying stages of development.
This fundraising round, led by Eurazeo, is intended to support the company’s growth and help it develop large-scale photovoltaic and agrivoltaic projects. TSE’s aim is to reinforce its significant presence in this field by developing strong local roots, close ties with the farming community and a resolute focus on innovation.

Through this investment – the fifth made by Eurazeo’s Infrastructure team – Eurazeo is pursuing its ESG and sustainability targets while supporting energy transition and contributing to a low-carbon economy.
Mathieu Debonnet and Pierre Yves Lambert, who jointly lead TSE, said:
“We are delighted to welcome Eurazeo, Bpifrance and Crédit Agricole as shareholders. Their investment will help to boost our growth and is a major source of pride for us. It also demonstrates the strength of our business model, products, innovations and know-how in the field of solar power. We will continue to develop according to our business model based on quality, a focus on the long term, a grass-roots commitment to farmers and manufacturers and an environment-focused culture. More than ever, we will play an active role in decarbonising our economy and increasing its resilience. We thank our new investors for the confidence they have shown in TSE’s plans.”

Melissa Cohen, Managing Director of Eurazeo’s Infrastructure team, added:
“We are delighted to be partnering with TSE, a producer of photovoltaic energy whose products combine the benefits of solar power and agricultural development, and which can be adapted to all types of terrain. This fundraising round will give it the resources it needs to fulfil its ambitions. We are happy to be taking part in TSE’s entrepreneurial journey, and particularly its development of innovative agrivoltaic solutions. TSE’s market position is entirely aligned with Eurazeo’s commitment to energy transition.”

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DIF Capital Partners invests in leading UK district heating company Pinnacle Power

DIF

DIF Capital Partners (“DIF”) is pleased to announce that it has signed an agreement to invest in Pinnacle Power Limited, a leading UK district heating platform, to accelerate its growth and fund the development and ownership of city-scale district heating networks across the UK. The transaction will see DIF owning a significant majority in the company, with the management team retaining a minority stake. This is following an agreement with Pinnacle Power’s previous shareholder, Pinnacle Group Limited. DIF’s investment will be executed through its DIF Infrastructure VII fund.

Pinnacle Power is a leading developer and turn-key contractor in the UK district heating market. Founded in 2012 and headquartered in London, the company has a successful track record, having delivered over 100 projects since its inception. Notably, it has developed and is the operator of the £87m Greenwich Peninsula network. With 87MW of heat capacity and servicing 15,700 residential units, this is one of the largest city scale networks in the country.

District heating networks are widely expected to play a crucial role in the UK’s journey to net zero. Today, heat-related activities are the biggest contributor to greenhouse gas emissions in the country, representing 37% of total emissions. District heating networks are a cost effective, low-carbon solution to traditional gas boilers in urban locations. As a result, the country’s district heating market is widely expected to undergo a sustained period of high growth, with substantial capital investment required to meet these net zero ambitions.

Gijs Voskuyl, Partner and Head of Infrastructure at DIF Capital Partners, said: “We share Pinnacle Power’s view that district heating networks will play a pivotal role in the energy transition story of the UK. We are impressed with what the Pinnacle Power management team has achieved to date and firmly believe in their ability to grow the business, backed by strong regulatory tailwinds. Pinnacle Power represents a compelling investment proposition for DIF, with an opportunity to invest in a build-to-core sustainable energy platform operating in a rapidly growing market.”

Commenting on the transaction, Toby Heysham, CEO of Pinnacle Power, said: “As recognised in the Government’s Energy Security Plan, heat networks will play a critical role in delivering affordable, low-carbon heating, and help hit the UK Government’s legally binding carbon targets. We are excited to be working with DIF to deploy the scale of investment this market needs. We know that the industry needs to deploy at least £60-80bn into low-carbon heat networks to unlock the vast amount of local, wasted heat and deliver that heat into homes and businesses. Many towns and cities have declared climate emergencies but very few have credible solutions to the ‘heat challenge’. This investment offers a clear pathway to achieving decarbonisation, through local investment in locally generated, low-carbon heat.”

Peregrine Lloyd, Group CEO of Pinnacle Group, said: “This agreement is the culmination of a ten-year journey since founding Pinnacle Power. I am incredibly proud of the work our management team has done to grow and nurture Pinnacle Power to see it become one of the country’s leading heat network platforms. The time is now right to hand over the reins to DIF, who will take Pinnacle Power to the next level and enable the scale of investment needed in the energy market. I look forward to following this exciting next phase in Pinnacle Power’s development.”

DIF was advised by AFRY, Deloitte, Evolution Infrastructure and Travers Smith. Pinnacle Power and Pinnacle Group were advised by Eversheds Sutherland and Opus Corporate Finance.

 

About DIF Capital Partners

DIF Capital Partners is an independent infrastructure fund manager, with more than EUR 15 billion of AUM. DIF was founded in 2005 and has built a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital, energy transition and sustainable transportation sector.

With a team of over 210 professionals in 11 offices, DIF Capital Partners offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu

About Pinnacle Power

Pinnacle Power is a heat network provider in the UK. We provide, build, own and operate services for a large number of heat networks around the country. Pinnacle Power was started in 2012 by Pinnacle Group and management. Since then, it has grown to be one of the leading heat network providers in the country. Pinnacle Power is currently designing and building a number of schemes for local authorities across the UK as well as operating networks and running a heat utility. Pinnacle Power have offices in London, Carlisle, Sheffield and Copenhagen.

For more information, please visit www.pinnaclepower.co.uk

About Pinnacle Group

Pinnacle Group is a community-facing, people-first business that delivers, manages, and maintains communities and places where people live, work, learn and play including a portfolio of 75,000+ mixed tenure homes and, 200+ schools as well as open spaces, public and private buildings, retail, distribution centres and manufacturing.

Formed in 1994, Pinnacle is a trusted service provider to both public and private sectors; employing 3,700+ people and operates across the UK from over 200 delivery locations.

For more information, please visit www.pinnaclegroup.co.uk

 

Contacts:

DIF Capital Partners:

Diederik Heinink, d.heinink@dif.eu

Pinnacle Power:

enquires@pinnaclepower.co.uk

Pinnacle Group:

Aisling Jamieson-Ewers, +44 (0)75 5281 0514 / Mia Dexter, M: +44 (0)73 1137 0065

PinnaclePress@headlandconsultancy.com

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DIF Capital Partners agrees to acquire majority interest in US-based solar platform Green Street Power Partners

DIF

DIF Capital Partners is pleased to announce that it has agreed to acquire a majority equity interest in US-based Green Street Power Partners (“Green Street”), a leading developer, financier, owner, and operator of distributed generation solar projects for various private and public clients across the US. DIF’s investment will be executed through its DIF Infrastructure VII fund.

Since its inception in 2014, Green Street has experienced rapid year-over-year growth driven by its experienced executive management team and extensive network of industry relationships. Headquartered in Stamford, Connecticut, Green Street has developed a 300+ MW portfolio of operational and under-construction projects throughout the country.

Green Street has over 2 GW of solar projects in its pipeline in both existing and new markets, which it will look to execute over the near-to medium-term. Green Street is well positioned to accomplish its development goals, utilizing its vertically integrated capabilities across development, legal, project financing, engineering, and project and asset management functions.

In addition to existing and upcoming renewable energy goals, execution of the growing development pipeline is further supported by the recently passed Inflation Reduction Act, providing a long-term runway of supportive renewable energy legislation long awaited by developers, sponsors, and market participants alike.

In 2023, Green Street’s projects nationwide will produce over 275 million kWh of energy, displacing over 200 thousand tons of CO2.

The transaction is subject to customary conditions and approvals and is expected to close in early Q2 2023.

“Green Street is very excited to be partnering with DIF. As a leader in distributed generation in the US, the partnership will enable Green Street to continue its growth efforts and execute on its 2 gigawatts and growing of pipeline,” said Jason Kuflik, President of Green Street. “We are excited about what we will be able to accomplish together. As a leading global infrastructure fund, we could not have picked a better partner.”

Green Street was advised by Scotiabank and its legal counsel Orrick, Herrington & Sutcliffe LLP in connection with this transaction.

“The partnership with Green Street will further grow DIF’s North American renewable portfolio and marks our first distributed solar generation platform in the North American market”, said Gijs Voskuyl, Partner and Head of Infrastructure at DIF Capital Partners . “DIF is excited to work with the Green Street team to continue developing and operating distributed solar projects across the US to further advance the global clean energy transition, one of DIF’s responsibilities as a leading infrastructure investor. Supported by strong thematic tailwinds in the US, we see this as an excellent opportunity to support a strong team in their goals to become a leading distributed generation developer and asset owner.”

DIF was advised by Macquarie Capital and its legal counsel Stoel Rives LLP in connection with this transaction.

 

About DIF Capital Partners

DIF Capital Partners is an independent infrastructure fund manager, with more than EUR 15 billion of AUM. DIF was founded in 2005 and has built a leading position in managing mid-market investments, primarily in Europe, North America and Australia.

DIF follows two strategies: its traditional DIF funds invest in lower risk mid-sized infrastructure projects and companies in the energy transition (incl. renewables) and utilities sector, as well as PPPs and concessions. The firm’s CIF funds invest in small to mid-sized companies that will thrive in the new economy. These companies are typically active in the digital, energy transition and sustainable transportation sectors.

With a team of over 210 professionals in 11 offices, DIF Capital Partners offers a unique market approach combining global presence with the benefits of strong local networks and investment capabilities. DIF is located in Amsterdam (Schiphol), Frankfurt, Helsinki, London, Luxembourg, Madrid, New York, Paris, Santiago, Sydney and Toronto.

For more information, please visit www.dif.eu.

About Green Street Power Partners

Founded in 2014, Green Street is a national developer, financier, owner, and operator of solar energy systems benefiting businesses and communities across the country. Green Street specializes in structured finance for solar assets, securing sponsor and tax equity alongside project-level debt financing to realize the highest value for its clients.

Green Street’s proven dependability, experience within the industry, and established portfolio of 300+ MW of operational and under-construction projects, underpin its success as one of the leading solar developers and owners in the country.

Green Street strives to continue this growth while staying committed to corporate social and environmental responsibility, as we sustain our environment for future generations through solar power. We view this responsibility as a fundamental part of our business, and we consistently work to inspire these values in our employees, partners, and customers. Green Street currently has 58 employees and is headquartered in Stamford, CT with a legal office in Tallahassee, FL.

For more information, please visit www.gspp.com.

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KKR and Brookfield agree transaction for global renewable developer X-ELIO

KKR
  • KKR and Brookfield signed a 50/50 joint venture agreement in 2019
  • 3 GW of renewables built or developed by X-ELIO
  • Strong diversified global presence across 5 continents

MADRID, Spain and LONDON, United Kingdom, 21 March 2023 — KKR, a leading global investment firm, has agreed to sell its 50% stake in global renewable developer, X-ELIO, to its joint venture partner, Brookfield Renewable. Following the transaction Brookfield Renewable will own 100% of X-ELIO.

Founded in 2005 and headquartered in Madrid, X-ELIO specializes in the development, construction, financing and operation of solar PV plants, storage and hydrogen projects worldwide. Since KKR’s original investment in 2015 and Brookfield’s acquisition of a 50% stake in 2019, X-ELIO has benefited from over $2bn of investment, enabling significant growth in the pipeline and increase in development pace. X-ELIO has built or developed 3 GW of renewables projects in total across 5 continents since it was founded.

Today, X-ELIO has built a strong presence across the top solar geographies in the world, and is expected to have 3 GW of assets in operation, under construction or ready-to-build by the end of 2023 across Spain, Italy, the U.S., Australia, Japan and Latin America. In addition, X-ELIO has over 10 GW of advanced near-term pipeline, which combined with extensive in-house expertise in renewable project development, positions X-ELIO to capture growing global demand for high-quality solar and storage assets.

Ignacio Paz-Ares, Head of European Renewable Power and Transition Investments at Brookfield Renewable, said: “X-ELIO is a business we know well following our initial investment and we are thrilled to continue to support this leading global platform with significant growth ahead. This transaction is very aligned with Brookfield’s strategy as a leading owner, operator and developer of renewables worldwide, driven by the incredible tailwinds for this sector.”

Tara Davies, Co-Head of European Infrastructure at KKR, said: “Since KKR’s initial investment eight years ago, we have helped X-ELIO transform into a global leader in sustainable energy development. As a firm, we have been a long-term investor behind the energy transition and we are focused on continuing to identify the right opportunities to support companies with the right resources, and seeking to play a leading role in this space. I’m proud of what we have been able to accomplish together, and wish X-ELIO continued success on this exciting journey.”

Lluis Noguera, CEO of X-ELIO, stated: “X-ELIO’s journey to become a leading developer with diversified global presence would not have been possible without our shareholders’ focus on execution and long-term value creation. Now, with the continued support from Brookfield, we are in an optimal position to continue growing our solar and storage business while tackling new opportunities in the energy transition space”.

KKR’s original investment in X-ELIO was made via KKR Global Infrastructure Investor Fund II. Brookfield Renewable will acquire the remaining stake in X-ELIO as a follow-on investment through the same flagship infrastructure fund that made the original acquisition.

The transaction is subject to customary closing conditions and is expected to close during the second half of 2023.

-ends-

 

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About X-ELIO

X-ELIO specializes in the development, construction, financing and operation of renewable and sustainable energy projects with a global presence in Europe, the United States, Latin America, Japan and Australia. The company has 17 years of experience with more than 2.8 GW built. The group is a world leader in the development of renewable and sustainable energy, with a strong commitment to the reduction of greenhouse gases and the fight against climate change. For additional information, please visit our website at www.X-ELIO.com, LinkedIn profile at https://www.linkedin.com/company/x-elio or Twitter profile at https://twitter.com/X_Elio.

About Brookfield Renewable

Brookfield Renewable operates one of the world’s largest publicly traded platforms for decarbonization technologies. Our diversified portfolio consists of hydroelectric, wind, solar, distributed energy and sustainable technology solutions across five continents. Our installed capacity totals approximately 25,400 megawatts and a development pipeline of approximately 110,000 megawatts of renewable power assets, 8 million metric tons per annum (“MMTPA”) of carbon capture and storage, 2 million tonnes of recycled materials and 3 million metric million British thermal units (“MMBtu”) of renewable natural gas projects.

Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with approximately $800 billion of assets under management.

Enquiries

KKR: Europe

Alastair Elwen / Sophia Johnston

FGS Global
T: +44 20 7251 3801

E: KKR-Lon@FGSGlobal.com

KKR: Spain

Sarah Estébanez

Tinkle

T: +34 636 62 80 41

E: sestebanez@tinkle.es

 

Brookfield Renewable

Simon Maine

T: +44 7398 909 278

E: simon.maine@brookfield.com

X-ELIO

Isabel Ruiz

T: +34 696 37 32 29

E: press@x-elio.com

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IK Partners to acquire Ipsum from Aliter Capital

IK Partners

IK Partners (“IK”) is pleased to announce that the IK Small Cap III Fund has signed an agreement to acquire Ipsum Group Limited (“Ipsum” or “the Company”) from Aliter Capital (“Aliter”). IK will be investing alongside the existing management team. Financial terms of the transaction are not disclosed.

Headquartered in Chorley, United Kingdom and founded in 2017, Ipsum is a leading provider of specialist infrastructure services to highly critical assets within the UK power and water markets. The Company has approximately 570 employees spread across its 14 hubs, providing 24/7 coverage nationally and serving over 1,400 clients across the UK, including regulated public sector bodies, government-backed organisations and private customers.

Ipsum provides a range of asset maintenance, upgrade and repair services to owners of power and water infrastructure. These include low and high voltage component inspection; switchgear and transformer upgrades; overhead line maintenance and jointing; smart grid maintenance; wet well cleaning; drainage and desilting; sewer relining, patching and repairs; and CCTV surveillance and heat mapping.

Through the efforts of its existing owners and the current management team, the Company has enjoyed significant growth since its formation. With the support of IK, the business will continue to focus on both organic and acquisitive growth in markets which have compelling long-term growth dynamics and invest in its people, asset base and technology offering to scale its proposition further.

Tom Salmon, Partner at IK Partners and Advisor to the IK Small Cap III Fund, said: “Ipsum is an excellent business that operates in a market that presents significant opportunity for further growth. Richard Thomas and his team have built a business with strong customer centricity and a reputation for quality and reliability, which is supporting UK infrastructure players on their journey towards energy transition, sustainability and a low carbon agenda. We have been very impressed with the business’ development to date and look forward to supporting the team to grow the business both organically and via further acquisition.”

Richard Thomas, CEO of Ipsum, said: “We strongly feel that a partnership with IK will help us develop further and achieve growth by scaling and refining operations, while continuing to pursue a successful M&A strategy. For the past six years, we have been ably supported by Aliter Capital and we thank them for all their efforts. We look forward to working with the team at IK and are excited to see where this partnership will take us.”

Greig Brown, Partner at Aliter Capital, said: “We are extremely proud of the progress and growth that has been achieved with the team at Ipsum since our initial investment in 2017. The business has effectively executed several important acquisitions during this period, solidifying its position as a market leader in infrastructure services in the UK. This is the third successful exit from our first fund, further evidencing our ability to build great businesses and we believe an excellent outcome for all parties involved. We’d like to thank Richard and his team for all their hard work and wish them the very best of luck for the future.”

Completion of the transaction is subject to legal and regulatory approvals.

About IK Partners

IK Partners (“IK”) is a European private equity firm focused on investments in the Benelux, DACH, France, Nordics and the UK. Since 1989, IK has raised more than €14 billion of capital and invested in over 170 European companies. IK supports companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikpartners.com

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About Ipsum Group

Founded in 2017 in Chorley, UK, Ipsum Group is a leading provider of specialist utility and infrastructure support services. Ipsum works in partnership with its customers across both regulated and non-regulated environments to optimise asset performance, supporting the security, resiliency and longevity of their critical networks. For more information, visit https://ipsum.co.uk

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About Aliter Capital

Aliter was founded by a group of seasoned support services entrepreneurs and investors – Billy Allan, Greig Brown, Andy Galloway and Andrew Busby – and focuses on small and mid-sized businesses in the UK support services sector, a market valued at over £300 billion. Its approach differs from traditional private equity models by making only a limited number of selective portfolio investments to deliver dedicated hands-on support. https://www.alitercap.com/

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For further questions, please contact:

IK Partners
Vidya Verlkumar
Phone: +44 (0) 7787 558 193
vidya.verlkumar@ikpartners.com

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Ratos company Aibel awarded major contract on Hammerfest LNG

Ratos

Equinor has awarded Aibel an EPCI (Engineering, Procurement, Construction and Installation) contract for modification work at the Hammerfest LNG facility on behalf of the Snøhvit Unit partners. The contract has a total value of approx. NOK 8 billion.

The Snøhvit Unit partners are: Equinor Energy AS (operator), Petoro AS, TotalEnergies E&P Norge AS, Neptune Energy Norge AS and Wintershall Dea Norge AS.

The EPCI contract comprises engineering, procurement, construction and installation in connection with the Snøhvit Future project, and the scope includes a land-based compression facility and electrification of the Hammerfest LNG plant. The assignment was an option in the FEED contract (Front-End Engineering and Design) that Aibel was awarded in September 2020.

“As owners, we are extremely proud of Aibel’s development in an uncertain environment where the energy crisis is one of the biggest challenges. Their operations secure predictable and safe access to energy for the future. That, combined with the trust they repeatedly receive from their customers, is impressive. Aibel´s future is bright,” says Christian Johansson Gebauer, member of the Board of Directors of Aibel and President, Construction & Services, Ratos.

Aibel will in addition execute further upgrades of existing systems at Hammerfest LNG to prepare the facility for extended life until 2050.

Aibel was the main contractor for the extensive recovery that followed the fire at the facility in September 2020, where Aibel rapidly mobilised around 170 engineers and more than 1,000 operators in rotation to the facility.

“We have been Equinor’s main supplier of maintenance and modification services at Hammerfest LNG since 2006, and our employees have gained good insight into the plant and developed great relationships with Equinor. We have also gained extensive experience from similar modifications and electrification assignments and are very grateful that Equinor selects us as the main contractor in the development of the future LNG facility at Melkøya,” says President and CEO of Aibel, Mads Andersen.

Engineering will start immediately, and Aibel will utilize the organisation from the FEED contract at the office in Asker, in combination with expertise from the modification organisation on the Norwegian west coast and North Norway. At its peak, the project will involve approx. 350 engineers and project personnel.

Aibel will plan and execute large and complex modifications at the facility. In addition, construction of larger modules will take place at Aibel’s yards. Most of the work will be in the period 2024-2026.

Aibel’s part of the project is scheduled for completion in late 2027. The contract award is subject to regulatory approval of the project.

For more information, please contact
Josefine Uppling, VP Communication, Ratos, +46 76 114 54 21, josefine.uppling@ratos.com

About Ratos
Ratos is a business group consisting of 16 companies divided into three business areas: Construction & Services, Consumer and Industry. The companies have approximately SEK 32 billion in net sales (LTM). Our business concept is to own and develop companies that are or can become market leaders. We have a distinct corporate culture and strategy – everything we do is based on our core values: Simplicity, Speed in execution and It’s All About People. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas.

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Sif takes final investment decision to construct the world’s largest monopile foundation manufacturing plant

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Egeria

Strong commitment from customers and cornerstone shareholder to strengthen
Sif’s position as the leading supplier of foundations for the Energy Transition

Strong Commitment from Customers and Cornerstone Shareholder to Strengthen Sif’s Position as the Leading Supplier of Foundations for the Energy Transition

 

• Sif Holding N.V. (“Sif” or the “Company”) today announces its €328 million Final Investment Decision (“FID”) to construct the world’s largest monopile foundation manufacturing plant in Rotterdam, the Netherlands. Construction is expected to start in April 2023;
• The upgraded manufacturing plant will significantly increase the total combined capacity of Sif to 500 kilotons a year and upgrade Sif’s capabilities to manufacture the equivalent of 200 XXXL, 11 meter diameter, 2,500 tons reference monopile foundations a year;
• Once the expanded manufacturing plant is fully ramped-up, which is expected in the first half of 2025, the Company projects EBITDA of €135 million in 2025 and of at least €160 million per annum from 2026 onwards. This results in a payback period of 3-4 years;
• Two launching customers, one of them being Ecowende (a joint venture of Shell and Eneco), together have committed to 348 kilotons of production (booked or in exclusive negotiation) bringing the present total orderbook to 662 kilotons;
• A long-term capacity reservation framework agreement with Equinor is in place while a second long-term capacity reservation framework agreement is currently being negotiated, which signifies strong commitment from both our customers and the market;
• These launching orders and long-term capacity reservation framework agreements result in strong visibility of future projects and provide significant support to the long-term financial position of the Company;

• A solid financing plan for the expansion facility has been committed through a combination of €100 million advanced factory payments from the launching customers, €50 million preferred equity from Equinor, €50 million common equity to be raised through a rights offering, which is fully underwritten by the Company’s largest shareholder Egeria (through Grachtenheer 10 B.V.) (the “Cornerstone Shareholder”) at €11.50 per share, €40 million in operational leases and €81 million of term loans to be provided by Invest-NL and a consortium of commercial banks, with the remainder being funded through cash and cash equivalents;
• The Cornerstone Shareholder is fully supportive of the expansion plan and has committed to participate in and underwrite the rights offering and vote in favour of the relevant EGM resolutions;
• FID is subject to various customary conditions and to the granting of an irrevocable building permit (‘Omgevingsvergunning voor de activiteit bouwen’). All relevant procedures are on schedule for the start of the construction activities.

Fred van Beers, CEO of Sif:
“By constructing the world’s largest monopile foundation manufacturing plant and by implementing next level integrated manufacturing technology with second to none process and quality controls, Sif will live up to its vision and take a pivotal step in securing its next phase of growth. As a result of this investment, we will strengthen our absolute global leadership position as monopile foundations solutions provider, enhance our innovative skills and create long term value for all our stakeholders with a clear growth path in an accelerating global offshore wind market. An important basis for the plan is the responsibility taken for safety and sustainability in building the facility as well as the
design and operation of the production process. I am thankful for the insights and constructive discussions we have had with our business partners including equipment and material supply partners, customers, management and employees, the works council, investors, supervisory board, industry experts, central and local governments,
funding partners and our Cornerstone Shareholder, Egeria. I especially want to thank Equinor for its substantial contribution to long-term funding through preferred equity and our launching customers, among whom Ecowende, for their confidence in Sif to support a state-of-the-art facility that can deliver the monopile foundations for their respective projects and for their advanced factory payments.”

About the upgraded production plant:
• The plant will be built at the 62 hectare Maasvlakte 2 site in Rotterdam, the Netherlands, as an extension of the existing facilities. Construction is set to start in April 2023, first manufacturing operations are scheduled to start in the second half of 2024;
• Monopiles with diameters up to 11.5 meters can be produced. Maximum output will be approximately 200 XXXL monopile foundations per year, assuming a 11 meter diameter, 2,500-ton reference monopile;
• The lay-out is such that upgrades to facilitate even larger diameters can be made;
• Sif’s CO2 footprint per kiloton produced will decrease, as the new factory will consume less gas per kiloton and will only use green electricity, generated by the on-site wind turbine;
• Nitrogen emission and deposition levels will be lower compared to today’s operational levels thanks to higher electrification of production and transport equipment and processes;
• The factory lay-out and set up is based on an optimised production process whereby state-of-the-art safety, quality and process control conditions will be met; and
• The Roermond plant will fully focus on the manufacturing of monopile foundation top sections, primary steel for transition pieces and pin-piles/jacket legs.

Capital Markets Day
On Friday 17 March 2023, Sif will host a Capital Markets Day during which further details of the investment and anticipated market developments will be shared by members of the executive board.

Foundation Market
Underpinned by increasing political and societal support for the energy transition, the offshore wind market is growing at an ever-increasing pace. Extensive market studies have shown that monopile foundations will remain the foundation of choice for offshore wind turbines from a reliability, manufacturing volume and cost perspective. As confirmed by tenders in the market and discussions with our customers and engineering firms, most wind farms will require monopile foundations with diameters ranging between 9 – 11.5 meters from 2025 onwards. With a track record of more than 2,500 monopile foundations manufactured and installed over the past two decades, supporting almost 12GW of
operational offshore wind, Sif is a critical supplier in the offshore wind value chain with an undisputed reputation. Based on this experience and knowledge, Sif is well positioned to assess the potential as well as the operational challenges related to the fast-growing product dimensions and the dynamic market environment.

Pål Eitrheim, executive vice president for Renewables in Equinor:
“With this agreement, we are securing strategic capacity in a key supplier market for our renewables business. Large monopile structures will be needed to develop future offshore wind projects, contributing to Equinor’s corporate strategy. We have an ambition to be a leader in the energy transition, and with this investment we are helping to establish additional supplier capacity in the green economy, while gaining access to an important sourcing option.”

The Investment
The total investment for the extension of the manufacturing plant is €328 million (including appropriate contingencies), which includes the implementation of state-of-the-art proven production technology and optimised manufacturing processes. The investment is based on a detailed, substantiated factory design that has been verified by external experts and advisors, supported by commitments from reputable construction partners and equipment suppliers, all with a proven track record of safety, quality, on-time
delivery and know-how.

The investment in buildings, infrastructure, equipment and people-capabilities enables the Company to manufacture monopile foundations with diameters ranging between 9 – 11.5 meters and the optionality to further expand the diameter of monopile foundations at a later stage. The set-up is such that – based on the reference monopile of 2,500 metric tons – an average output of 200 XXXL monopile foundations a year can be realised. This is a major commercial advantage and has been valued on its merits by the commitments from our launching customers. The investment will allow Sif to optimise its manufacturing footprint, production efficiency and effectiveness between its two plants.
The design of the new production facility is based on proven next generation automated manufacturing technology and will be fully compliant with the highest industry safety and environmental standards.

Overall, an additional work force of around 200 FTEs is estimated for the Rotterdam site on top of thecurrent average Rotterdam work force for which a detailed recruitment strategy is in place. The Rotterdam set-up allows for the execution of the entire manufacturing process including plate preparations, rolling, welding, assembly, coating and logistics. Strong focus is given to the implementation of environmental improvement initiatives reducing the Company’s nitrogen and CO2 emissions even further than today’s already low numbers. A new permit pursuant to Environmental Law (in Dutch: Wet algemene bepalingen omgevingsrecht (Wabo); vergunning
voor de activiteit milieu) is in place.

For the Nature Conservation Act permit (“Nature Permit”), relating to nitrogen deposition in protected areas, Sif is participating in the process it is legally obliged to pursue. The expanded facilities will result in less nitrogen deposition than the activities previously notified. Sif is preparing measures to further decrease the nitrogen depositions. Based on this, Sif has a clear process in place for conferment of a Nature Permit for both the existing activities as well as the expanded activities which will be covered by the same Nature
Permit. With our roll-on-roll-off quay and our 650-meter deep sea quayside with direct sea-access we are strategically positioned to accommodate all next generation installation vessels required for the largest and heaviest monopile foundations on a 24/7 basis. These facilities make our site at Rotterdam an attractive load out and marshalling location for offshore wind. The plant in Roermond will manufacture primary steel for transition pieces and top sections of monopile foundations up to a maximum diameter of 9 meters. The top sections manufactured in the Roermond facility will be combined with bottom sections in Rotterdam. In Roermond, due to the foreseen stable production demand, the present payroll workforce will be able to cover 80% of the workload with the remaining 20% being executed by a flexible workforce.

Hugo Buijs (Shell) and Cees de Haan (Eneco), on behalf of Ecowende:
“There are major ambitions for offshore wind in the Netherlands. Acceleration is needed in a way that contributes to nature both above and below the water. With the expansion of Sif as the monopile foundations solutions provider, we can take another big step in accelerating the large scale roll out of offshore wind in the Netherlands and beyond. Shell and Eneco already have a long standing relationship with Sif through the windfarms Borssele III/IV and Hollandse Kust Noord. We are thrilled to be one of the launching customers and to be contributing in this way to the expansion of Sif’s manufacturing plant. Sif will also be important in enabling offshore windfarms with a net positive impact on nature in the future. They will accommodate and contribute to the implementation of some of the ecology measures we’ve put forward in our bid. We are looking forward to building the windfarm at Hollandse Kust (West) lot VI with Sif, as well as to future collaborations.”

Financial arrangements
Fully committed and robust funding of the expansion plan is in place. The investment will be funded through a combination of advanced factory payments, issuance of preferred equity, fully underwritten issuance of common equity, operational leases and term loans with the remainder being funded through
cash and cash equivalents:
• €100 million of advanced factory payments from two launching customers amongst whom Ecowende, illustrating a strong commitment for our investment plan, manufacturing capabilities and strategic direction from some of the largest offshore wind asset owners in the world;
• €50 million commitment from Equinor to an investment in newly created convertible cumulative preferred equity that gives the right to a 5% coupon with a gradual step-up as of July 2025 to an 8% coupon as of July 2028, a preferred long-term capacity reservation arrangement and an option for Equinor to convert its preference shares to ordinary shares from 1 July 2028 at a conversion price of €12 per ordinary share. The holder of the preferred equity has 1/20th of the voting rights compared to ordinary equity. The Company has an option and the firm intention to redeem the preferred equity between January 2025 and July 2028 at par value plus accumulated dividend, i.e.
before the preferred shares may be converted into ordinary shares;
• €50 million of common equity, to be issued through a rights offering, fully underwritten by the Cornerstone Shareholder for a price of EUR 11.50 per share;
• €40 million operational lease facility provided by Rabobank for new rolling, cutting and milling machinery and logistics equipment; and
• €81 million 6-year amortising term-loans with €64.8 million provided by Invest-NL and €16.2 provided by a consortium of banks consisting of ABN AMRO, AKA Bank, DNB (UK) (“DNB”), ING and Rabobank (together “Term Loan Consortium”), a €50 million Revolving Credit Facility from a consortium of banks consisting of ABN AMRO, ING and Rabobank, alongside a €350 million  guarantee facility from a consortium of banks and guarantee providers consisting of ABN AMRO, DNB, Allianz-Trade, ING, Rabobank and Tokio-Marine. The margin on term-loans will be the same across the participants: EURIBOR+200bps and common upfront and commitment fees. A new set of terms and conditions will apply to the financing arrangements, including but not limited to adjusted financial covenants, limitations on dividend until the completion of the expansion plans and other
conditions customary for this type of financing. The Company has signed a committed term sheet for the financing arrangement and committed offer
document for the operational lease facility. In the coming weeks, the Company will execute all the relevant and required (long-form) documentation. The Company expects to reach Financial Close by 15 March 2023 subject to the fulfilment of all relevant conditions.

Rinke Zonneveld, CEO at Invest-NL:
“Sif is a prime example of the new green industry, the kind of company that paves the road to a carbon neutral economy. Given its track record and ambition, it plays a vital role in the energy transition that is needed to help us build The Netherlands of tomorrow, especially when it comes to offshore wind. We are truly excited to be part of the financial consortium that enables Sif to realize its ambitions with its new manufacturing plant in Rotterdam. With the support of the Ministry of Economic Affairs and Climate, Invest-NL will provide a €64.8 million term-loan, by far our largest funding to date.”

Governance
The issuance of the preferred and common equity will be subject to approval of the Company’s shareholders, to be obtained in an extraordinary general meeting (see below under “Extraordinary general meeting of shareholders”). The Cornerstone Shareholder is supportive of the Company’s investment plan and strategic direction and has therefore committed to vote in favour of such resolutions. Senior management has committed to purchase (additional) shares in the capital of the Company to further align the interests with the shareholders.

Egbert Prenger, CEO at Egeria:
‘’Since 2005, Egeria has been a shareholder in Sif backing the development to the leading offshore wind foundation manufacturer Sif is today. We are excited to continue to support Sif in entering the next growth phase and are confident that the Company is able to realize its ambitions. We see favourable market fundamentals as well as substantial commitments from all stakeholders involved as a strong foundation to this expansion plan’’.

Outlook
Based on developments in the market, discussions with customers for longer term offshore wind projects and the orderbook, the Company projects EBITDA of €135 million in 2025 and of at least €160 million per annum from 2026 onwards, barring unforeseen circumstances. This is driven by:
• Strong market conditions for the offshore wind market for XXXL monopiles;
• Increased capacity to 500 kilotons per year compared to 220 kilotons today;
• Continuation of the operation of pin-piles/jacket legs production lines in Roermond;
• Higher contribution margins per ton due to manufacturing more complex monopile foundations, which is confirmed by the secured orders of the launching customers and ongoing tender discussions with other potential customers;
• Direct labour savings per ton due to increased automation and process optimization of the operations; and
• Improved operational leverage.

Based on the expected EBITDA and cash-flow outlook, the executive board and supervisory board are confident that the investment in the world’s largest monopile foundation manufacturing plant, with a payback period of 3-4 years, will result in solid returns, creating long term shareholder value. Finally, as a result of the envisaged design and construction process, the impact of the integration of the new production lines into the existing production lines will be limited. The Roermond and Rotterdam
facilities will continue to be operational during the construction period and will execute the order book that presently stands at approximately 662 kilotons after the most recent addition of jacket legs and pin piles for Aker. This orderbook number does include the launching projects as reflected above.

Extraordinary general meeting of shareholders
In connection with the proposed introduction of preferred equity in its share capital and the issuance of ordinary shares, the Company will invite shareholders to an extraordinary general meeting that is to be held on Tuesday 28 March 2023. The notice and agenda for that general meeting, as well as the draft amended Articles of Association, can be found on the Company’s website shortly. Such documents contain additional details regarding the preference shares that will be introduced in the Company’s capital and the
issuance of ordinary shares, as well as the other authorisations that are sought from shareholders in connection with the expansion plan and financing thereof.

Financial calendar for 2023
– 15 March 2023: Financial Close
– 17 March 2023: Capital Markets Day
– 17 March 2023: Full Year 2022 results and 2022 Annual Report
– 28 March 2023: Extraordinary General Meeting of Shareholders
– 12 May 2023: Q1 2023 trading update
– 12 May 2023: Annual General Meeting of Shareholders

Advisors
Nomura Financial Products Europe is acting as financial advisor to the Company. Rabobank is acting as debt advisor to the Company. Allen & Overy LLP is acting as legal advisor to the Company. ABN AMRO will be appointed as Subscription and Listing Agent for the rights offering. ABN AMRO, ING and Rabobank (in cooperation with Kepler Cheuvreux) will provide corporate broking services to the Company.

Contact information
Fons van Lith
+31 651 314 952
f.vanlith@sif-group.com

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation (Regulation 596/2014). This announcement does not constitute an offer to sell or the solicitation of an offer to buy, or subscribe for, any securities and cannot be relied upon for any investment contract or decision. The securities
referred to herein have not been and will not be registered under the Securities Act of 1933, as amended  (the “US Securities Act”) and may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the US Securities Act. The Company does not intend to register any securities in the United States.

Disclaimer
This announcement may include forward-looking statements, which are based on the Company’s current expectations and projections about future events and speak only as of the date hereof. By their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not within or outside the control of the Company. Such factors may cause actual results, performance or
developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no undue reliance should be placed on any forward-looking statements. The Company operates in a rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor to assess the impact that these factors will have on the Company. Forward-looking statements speak only as at the date at which they are made and the
Company undertakes no obligation to update these forward-looking statements.

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Convertus wins 20-yr and C$ 490m contract to build a bio-fuel facility for the Region of York (CA)

Convent Capital

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Convertus Group was recently awarded a 20-year, C$490m contract by the York Region (The Regional Municipality of York) to process the Region’s curbside household green bin waste. Convertus plans to design and build a state-of-the-art biofuel facility in York Region by March 2027 that will convert York Region’s green bin waste into fertilizer and renewable natural gas. This is amazing news and is a key step towards Convertus becoming the largest and most advanced organic waste operator in North America.

https://www.newmarkettoday.ca/local-news/york-region-awards-490m-contract-for-organic-waste-facility-6369665

https://www.york.ca/newsroom/campaigns-projects/biofuel-facility

 

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