Plans to restore the famous Hammersmith Bridge in London via funding from a public-private partnership (PPP) structure put into sharp focus the issues currently surrounding new infrastructure projects. The latent defects on the project will clearly be a central factor, even in non-inflationary times, but the fact is risk-sharing is now needed across the board whether you are restoring a Victorian bridge or building a new hospital in Weeneebayko.
The Zhong Neng offshore wind project in Taiwan, a joint venture between China Steel Corporation and a fund managed by Copenhagen Infrastructure Partners, reached financial close late last year. This was a transformational project for the Taiwan offshore wind sector that broke new ground by being the first project to be banked without export credit agency support, and the first to be led by Taiwanese domestic banks, including major state-owned banks. Shilei Huang, Saket Banka and Tom White of MUFG, and Fergus Smith, Brendan Quinn and Nettie Choo of White & Case, highlight the key features of the project.
Project Finance International has published its yearly Global Energy Report, 52 pages of deep analysis of issues surrounding the financing of energy projects around the world. The Report covers challenges in financing hydrogen projects, offshore wind in US, Germany and France and battery projects in Australia. There are in depth articles on India and Saudi Arabia and a host of other articles to enjoy. To see the digital version of this report, please click here To purchase printed copies or a PD
Robust contractual structures and a prudent allocation of risk are required to ensure profitability throughout the hydrogen value chain. Importantly, sponsors should consider the bankability of projects and engage financial advisers at an earlier stage. By Robert Johnson, head of oil & gas, and petrochemicals, project finance-Asia, and Amanpreet Singh, director, ESG finance department Asia, MUFG Bank, and Dr Babul Patel, PE principal, and Pat Sonti, senior consultant, NexantECA.
In Europe, hydrogen accounts today for less than 2% of our energy consumption. It is mainly used to produce chemical products, such as plastics and fertilisers, and 96% of this hydrogen is produced from natural gas, emitting significant amounts of CO2 throughout the generation process. Global hydrogen production results in close to 900m tons of CO2 per year, according to the IEA. By Pierre-Louis Delon, vice-president, Finergreen.
Born from the break-up of Dhamma Energy, DH2 Energy is betting on hydrogen as the answer to the questions of how best to transition to a carbon-free energy solution and as the answer for countries looking for energy independence. By Nick Herbert.
By partners Timothy Matthews, DC office, Ayesha Waheed, London, and Seyfi Can Kandemir, London, and associates Opeyemi Atawo, London, and Scott Clausen, DC office, in law firm Morgan Lewis’s global project finance, infrastructure and natural resources group.
The US offshore wind energy market, and government and industry support for the same, continues to develop at an impressive pace. By Eric Pogue, Amanda Rosenberg, Meredith Campanale, Mark Williams, Paul Astolfi, partners, Lauren Bachtel, counsel, and Addison Perkins, associate, Mayer Brown.
The United States Department of Energy Loan Programs Office is trending. Political realities have handed the direct lender and guarantor a critical role in financing the risks inherent to the clean energy transition. PFI spoke with LPO director Jigar Shah as his team races to deploy its US$46bn budget before 2024. By Joti Mangat.
The tax equity market continues to face challenges as the offshore wind pipeline grows. An ongoing lack of capacity and legislative uncertainty are complicating things. By Alison Healey.
The stand-alone 50MW/100MWh lithium-ion Bouldercombe Battery Energy Storage System developed by ASX-listed renewables developer Genex Power achieved financial close on February 28 2022. It is understood to be the first utility-scale BESS in Australia to be supported by long-tenor project financing on a split procurement basis By Elizabeth Charlesworth, partner, Peter Davis, partner, Kristen Percy, partner, and Antonia Xu, solicitor, Herbert Smith Freehills.
Hybrid projects, round-the-clock (RTC) power, peak power supply and battery storage projects are all being developed in India at some pace. By Prasad Hegde, managing director, Project & Export Finance & Regional Head South Asia, and Kunal Agrawal, director, Project & Export Finance, Standard Chartered Bank.
Saudi Arabia is possibly the largest project finance and public-private partnership market in the world and is expected to maintain this distinction at least until 2030, when the Kingdom’s economic and institutional transformative Vison 2030 economic diversification is to be realised. Delivering one trillion dollars worth of projects and infrastructure is the cornerstone of this vision launched in 2016. By Ghazali Inam, senior vice-president, Riyad Bank.
The Greenlink Interconnector is the first privately funded interconnector in Europe and reached financial close in March 2022. Greenlink is a key piece of the energy transition story leading to further integration of national grids which will ultimately lead to consumer benefits, write Michael De Witte, director, Energy Advisory & Project Finance, Nathalie Lemarcis, co-head London Energy Advisory & Project Finance from Societe Generale Corporate & Investment Banking and James O’Reilly, CEO of Greenlink Interconnector Limited.
The development of offshore energy has long been identified in France as an essential element of the country’s energy transition. Nevertheless, the delays and difficulties encountered in the development of the first bottom-fixed offshore wind projects have led to France lagging behind its European neighbours in the deployment of these installations. However, France has approaches the development of floating offshore wind projects with renewed ambitions and the desire to create a dynamic and dominant industry in this market. By Jean-Luc Champy, partner, and Camille Fouqué, associate, White & Case Paris.
Hamburg-based private bank Berenberg may be more than 430 years old but it has found itself a niche in the slightly newer business of providing junior debt to renewable energy projects. It fills the leverage hole that frees up developer equity for more projects and supports the overall growth in renewable energy generation. By Nick Herbert.
South-East Asia has a young, and increasingly internet connected, population which is driving some of the fastest growing internet economies. By James Harris, partner, and William Stroll, partner, Pinsent Masons MPillay, Singapore.
Welcome to the 2022 Refinitiv Project Finance International (PFI) Yearbook. The Yearbook is our annual publication in which we look at the events of 2021 through case studies and the PFI Awards, and look forward into 2022 with a range of themed articles and profiles in the Global section of the book. By now we all would have hoped the Covid 19 pandemic would be in the rear-view mirror but, perhaps not surprisingly, the virus lingers and mutates. One last push, one final variant and we should be
|Date||Project Name||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Providence Asset Group Victoria Solar Farm Portfolio Acquisition Project||APAC||Australia||Power||10.600||Pvdnce Invest Mgmt Pty Ltd||WHITE-CASE, HERBERT-FREE|
|4 Renewable Energy Back Lane, Gipsy Lane, Ernesettle and Potmans Lane Battery St||EMEA||United Kingdom||Power||33.290||Arlington Energy Ltd, 4 Renewable Energy|
|Smart Path Project||United States||United States||Power||304.150||New York Power Authority||PRAGER-CO-LLC|
|Central East Energy Connect Project||United States||United States||Power||615.000||LS Power Equity Partners LLC, New York Power Authority||PRAGER-CO-LLCMILBANK-LLP, SIMPSON-THACHER|
|Clearway Community Energy Acquisition Project||United States||United States||Power, Power||660.000||Kohlberg Kravis Roberts & Co, Clearway Energy Inc||BOFA-SEC-INC, TD-SECURITIES, MORGAN-STANLEYMILBANK-LLP, KIRKLAND-ELLIS|
|Marubeni Corp Changhua Coastal Industrial Park Floating Solar Project||APAC||Taiwan||Power||166.500||Marubeni Corp|
|DIF Capital Partners Poland Onshore Wind Farms Portfolio Project||EMEA||Poland||Power||109.710||Dif Capital Partners Ltd||DNB-ASACLIFFORD-CHANCE, ALLEN-OVERY|
|Celadon Solar Portfolio Project||United States||United States||Power||76.300||Greenbacker Renewable Energy||MOORE-VAN, STOEL-RIVES-LLP|
|Jupiter Power ERCOT Texas Battery Energy Storage System Portfolio Project||United States||United States||Power||174.600||Jupiter Power LLC||HUSCH-BLACKWELL, NORTON-ROSE-FUL|
|Prejeance Italy Wind & Solar Photovoltaic (PV) Portfolio Project||EMEA||Italy||Power, Power||50.730||Prejeance Industrial SAS||FINERGREENBONELLI-EREDE, LEGANCE|
|Date||Project Name||Status||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Pampa Norte 2 Solar Project||Government Approved||LATAM||Chile||Power||143.000||Enel Generacion Chile SA|
|Clear Fork Texas Liquefied Green Hydrogen Production Plant Project||Contract Signed||United States||United States||Petrochemicals, Petrochemicals||0.000||Equix Inc, Clean Energy Hldg Llc||ING4|
|Shire Oak International Vina Australia Dong Nai & Vinh Loc Rooftop Solar Systems||Contract Signed||APAC||Vietnam||Power||0.000||Shire Oak International Ltd|
|Shell / Porto do Acu Green Hydrogen Project||Agreement Signed||LATAM||Brazil||Power||0.000||Porto do Acu Operacoes SA, Shell Plc|
|Statkraft North Irish Sea Array Acquisition Project||Announced||Ireland-Rep||Ireland-Rep||Power||0.000||Statkraft AS|
|Southern & Central Sweden Solar Photovoltaic Pipeline Project||Announced||EMEA||Sweden||Power||0.000||Renewable Energy Systems Ltd, Alight Ab|
|BrintO Island Green Hydrogen Project||Announced||EMEA||Germany||Power||0.000||Allianz SE, Copenhagen Infrastructure|
|Posco Energy Sinan Offshore Wind Farm Project||Government Approved||APAC||South Korea||Power||0.000||Posco Energy Co Ltd|
|Pescadores Islands Huanpeng Wind Complex Project||Awaiting Government Approval||APAC||Taiwan||Power||0.000||Taiya Renewable Energy Co Ltd|
|Electrify America Solar Glow 1 Project||Contract Signed||United States||United States||Power||0.000||Terra-Gen Power LLC|