Financing for Energy Projects
As a seasoned merchant banking group, Capital Corp has worked on utility scale renewable and non-renewable energy projects all over the world, including in emerging economies; in fact, we have been involved in renewable and non-renewable project financing for nearly 40 years now, and arranging funding for such types of projects is generally much simpler than even other types of projects, not to mention that in the case of renewable energy projects they are a more environmentally-friendly way of producing much-needed energy.
Energy project financing includes solar (pv, or photovoltaics) energy, wind turbines, hydropower, biofuel, geothermal energy, and biomass energy, as well as traditional oil and gas. A great feature of utility scale energy projects is that they are very flexible and can be suited to rural and remote areas, which widens the scope of the industry and does not prevent their location from being a hindrance to the feasibility of the project.
Types of Energy Projects We Fund
Oil & Gas
Biofuels & Fuel Cells
Funding an Energy Project
A great feature in funding utility scale renewable and non-renewable energy projects is the fact that:
1) Traditional funding instruments can and often are used, and
2) NO special accommodations or arrangements need to be added on to a funding arrangement involving renewable or non-renewable energy.
The best case scenario is if you (as project promoter/owner) have an off-take agreement (agreement in which a third party that has signed a contract guaranteeing that they will be buying the owner's output for a certain length of time in the future) right from the start.
Why? Because for investors it is a guarantee of return on their investment, not to mention that it is also a steady guaranteed payment on the debt of the equipment due to the fact that the energy produced is sold over the long term (thus, there is a guaranteed income).
The Funding Process
On the business end of an energy project, the promoter/ project owner is required to produce essentially the same basic information and documents as he/she would in any other type of project:
Feasibility Study (if you have it)
Any and all information and documents connected with the technology to be used
PLUS off-take agreement
What can often be the (only) tricky part of funding a utility scale energy project is assessing the technology that will be used to produce this energy; but solid, time-tested energy-producing manufacturers do exist and are often favored in these types of deals.
There are many financing tools that we use in energy project transactions in order to create the best-fitting financing structure, such as:
Debt financing (Senior/Jr, Syndicated)
Tax credits & incentives
...or a combination of the above!
45 Years of Experience in the International Banking Industry
Experienced Project Financing
Awarded in Orlando's Business Hall of Fame for 12 Years Running
2017 Gamechanger of the Year Award Winner
Are you a broker looking for new funding sources for your client(s)?
We always appreciate the interest garnered by the service we provide. While we do not have agents representing us in any countries of the world, we still get most of our business from banking consultants, introducers, and brokers worldwide.
If you are a broker, banking consultant, or professional introducer, we welcome the opportunity to do business with you; and in that respect, if you are interested to submit any projects that require funding, we invite you to fill out the contact form below.