SKYLINE RENEWABLES acquires additional wind portfolio

Ardian

The subsidiary of Ardian Infrastructure made the acquisition of four additional wind farms expanding Skyline’s holdings to 803 MW

Portland, February 12, 2019 – Skyline Renewables has purchased a 117 megawatt (MW) wind portfolio from NJR Clean Energy Ventures (CEV), the clean energy subsidiary of New Jersey Resources (NYSE: NJR).

The US wind farms are located in Iowa, Kansas, Pennsylvania and Wyoming providing clean renewable energy to major population centers across the country.

“We set out to become a leading North American clean independent energy platform,” said Skyline Renewables President & CEO, Martin Mugica. “This latest acquisition marks an important step forward as it diversifies our portfolio geographically and it marks the first tax equity financing fully negotiated by Skyline Renewables.  We are excited to extend our partnership with Capital One as tax equity partner with this portfolio and look forward to further opportunities as we execute our strategy.”

“We are delighted to partner with Skyline Renewables to help them complete this acquisition,” said George Revock, Managing Director and Head of Alternative Energy and Project Finance at Capital One. “This investment is emblematic of Capital One’s commitment to be a leading supplier of financing to the renewable energy sector.”

With this latest acquisition, Skyline Renewables will grow its wind portfolio to 803 MW of controlled capacity since forming the company earlier last year as a partnership between Ardian and Transatlantic Power Holdings. Skyline Renewables announced its first acquisition of Whirlwind Energy, a 60 MW project in NW Texas, in March 2018. In September 2018, they acquired Hackberry Wind Farm, a 166 MW farm also in NW Texas, and in October 2018 announced the acquisition of Starwood Energy’s 51% interest in the Horse Creek and Electra wind farms, both 230 MW projects.

“We are ambitious, nimble and we have deep industry expertise,” continued Mr. Mugica. “There are many promising opportunities ahead as we expand Skyline’s reach to different parts of the country with strong clean energy assets that will allow us to actively manage our assets and optimize returns.”

CCA Capital served as advisors to Skyline Renewables to support the tax equity financing.

ABOUT SKYLINE RENEWABLES

Skyline Renewables is a partnership between Transatlantic Power Holdings (TPH) and Ardian, a world-leading private investment house, to establish a leading North American renewables platform. With a current wind portfolio of 803 MW, Skyline Renewables aims to build a total installed capacity of 3 GW. Skyline Renewables was formed when it announced its first acquisition, Whirlwind, a 60MW windfarm in Texas, in March 2018. CEO, Martin Mugica, a top executive within the US clean energy sector with expertise in wind, solar, natural gas fired generation and power trading activities, leads Skyline Renewables. Skyline Renewables’ leadership team features a number of the individuals who helped build and lead Iberdrola Renewables to become the then second largest and fastest growing renewables energy company in the US, at that time.

Ardian Infrastructure is a world leading Infrastructure Fund Manager with special focus in Energy and Transport sectors. In the Renewable space, Ardian Infrastructure accounts circa 2 GW through various technologies: wind, solar, hydro and biomass. Ardian Infrastructure renewables is present in many geographies: North and South America and in Europe including Nordic countries.

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$90bn managed or advised in Europe, the Americas and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering excellent investment performance to its global investor base. Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic growth around the world. Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more than 550 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It manages funds on behalf of around 800 clients through five pillars of investment expertise: Funds of Funds, Direct Funds, Infrastructure, Real Estate and Private Debt
Ardian on Twitter @Ardian

PRESS CONTACT

ARDIAN US
The Neibart Group
Charlie Mathon
cmathon@neibartgroup.com
Tel +1 718 801 8824
Cell +1 508 614 0667

 

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DIF acquires Warradarge Wind Farm in Australia

DIF

Sydney, 29 January 2019 – DIF is pleased to announce the acquisition of the 180MW Warradarge Wind Farm, the third and largest asset to be acquired by the renewable energy investment vehicle ‘Bright Energy Investments’ which is a joint venture between DIF Infrastructure V, CBUS and Synergy.

The Warradarge Wind Farm is a greenfield project located near Eneabba in Western Australia and is recognised as one of the best renewable energy projects in Australia due to its location and abundant wind resource. The total output will have a circa 50% capacity factor, the equivalent to the average annual electricity needs of 135,000 Western Australian homes.

Vestas has been awarded the engineering, procurement and construction contract as well as the operations and maintenance contract with a yield-based availability guarantee. Construction is expected to commence in early 2019, creating up to 200 local jobs and first power is expected to be generated in 2020. Its 51 turbines will be among the largest in Western Australia with a tip height of 152 metres, sporting some of the longest blades onshore at 66 metres. Synergy, an electricity generator and retailer that is owned by the Western Australian Government, will purchase all electricity and renewable certificates from the project, assisting Synergy and Western Australia to meet its 2020 Large-scale Renewable Energy Target obligations.

This investment fits neatly within DIF’s mandate to acquire infrastructure and renewable energy assets that will deliver long-term stable cash flows for the fund and add to DIF’s existing portfolio of Australian renewable energy assets.

Marko Kremer, DIF’s Head of Australasia added: “DIF is delighted that it played a leading role in this significant project for Western Australia and excited to make a large contribution to the growing Australian renewable energy market, which supports the nation’s commitment to a greener economy, as well as creating job opportunities in Western Australia.”

About DIF
DIF is an independent infrastructure fund manager, with €5.6 billion of assets under management across seven closed-end infrastructure funds and several co-investment vehicles. DIF invests in greenfield and brownfield infrastructure assets located primarily in Europe, North America and Australasia through two complementary strategies:

  • DIF Infrastructure V targets equity investments in public-private partnerships (PPP/PFI/P3), concessions, regulated assets and renewable energy projects with long-term contracted or regulated income streams that generate stable and predictable cash flows.
  • DIF Core Infrastructure Fund I targets equity investments in small to mid-sized infrastructure assets in the energy, transportation and telecom sectors with mid-term contracted income streams that generate stable and predictable cash flows.

DIF has a team of over 110 professionals, based in eight offices located in Schiphol (the Netherlands), Frankfurt, London, Luxembourg, Madrid, Paris, Sydney and Toronto. Please visit www.dif.eu for further information.

Contact:
Allard Ruijs, Partner
Email: a.ruijs@dif.eu

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CapMan Infra invests into onshore wind farm in Sweden

CapMan Infra has completed its second investment on behalf of NH Investment & Securities Co., Ltd. (“NHIS”) and NH-Amundi Asset Management Co., Ltd. (“NH-Amundi”), major financial institutions in Korea. The investment is a managed account solution into Överturingen Wind Farm, a large onshore wind farm in Southern Norrland in Sweden. The investment highlights CapMan’s capacity to serve large international investors and CapMan Infra’s ability to access high quality Nordic infrastructure opportunities.

Under the managed account, CapMan Infra will manage NHIS and NH-Amundi’s acquisition of a 50% stake in the wind farm under development. Once completed, the wind farm has a capacity of 235 MW with an ability to produce green electricity for up to 265,000 apartments or 40,000 stand-alone houses annually. Construction on the wind farm has started and the park is expected to be fully operational by the end of 2019. CapMan Infra will manage the asset and the investment will generate long-term management fee for CapMan during the investment period.

“CapMan Infra is excited to partner with NHIS and NH-Amundi to help construct one of the largest onshore wind farms in Sweden. The transaction highlights our ability to access high-quality Nordic infrastructure projects,” says Harri Halonen, Partner at CapMan Infra.

“This mandate demonstrates our ability to provide value-add service to large institutional investors looking to increase their exposure to Nordic private assets. Our strategy includes broadening our international client base, and the co-operation with NHIS and NH-Amundi is a perfect example of its successful implementation,” comments Joakim Frimodig, CapMan’s CEO.

CapMan Infra’s investment focus is core infrastructure and core+ assets with limited market or contractual risks in the energy, transportation and telecom sectors. CapMan Infra recently held a first close on its first midcap Nordic infrastructure fund. The managed account investment into the wind farm is completed exclusive of the fund. The Nordic team operates from Helsinki and Stockholm with a total of 60 years of experience in infrastructure investments.

Scala Fund Advisory acted as placement agent and Newsec as financial advisor in the completion of the managed account investment.

For further information, please contact:
Harri Halonen, Partner, CapMan Infra, tel. +46 768 710 062
Joakim Frimodig, CEO, CapMan Plc, tel. +358 50 529 0665

About CapMan

CapMan is a leading Nordic private asset expert with an active approach to value-creation in its target companies and assets. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate and created substantial value in these businesses and assets over the last 30 years. CapMan employs today approximately 120 private equity professionals and has approximately €3 billion in assets under management. We mainly manage the assets of our customers, the investors, but also make investments from our own balance sheet. Our objective is to provide attractive returns and innovative solutions to investors. Our current investment strategies cover Buyout, Growth, Real Estate, Infra, Credit and Russia. We also have a growing service business that currently includes procurement services (CaPS), fundraising advisory (Scala Fund Advisory), and fund management services. www.capman.com

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The Carlyle Group Makes a Strategic Investment in Crimson Midstream, a Provider of Crude Oil Transportation and Storage Services

Carlyle

Investment to Accelerate Crimson’s Growth and Increase U.S. Crude Producers’ Access to Global Markets

WASHINGTON, DC – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announces it has made a strategic equity investment in Crimson Midstream Holdings, LLC (Crimson), a provider of crude oil transportation and storage services that operates more than 2,000 miles of pipeline in the U.S. transporting approximately 400,000 barrels of crude oil per day. This strategic partnership will help enhance Crimson’s support of shippers on its Gulf of Mexico, Louisiana and California pipeline systems and grow its presence in these regions and beyond as demand for U.S. crude export infrastructure increases. Carlyle’s Global Infrastructure Opportunity Fund provided the equity for this investment.

John Grier, Founder and Chief Executive Officer of Crimson, said, “The volume of crude oil being produced in the U.S. is unprecedented. Current pipeline and export infrastructure is insufficient to meet the needs of producers and rising global demand for U.S. oil exports. We look forward to working with Carlyle to build, upgrade and maintain the infrastructure needed to alleviate transportation bottlenecks and accelerate U.S. crude production.”

Ferris Hussein, a Managing Director on Carlyle’s Global Infrastructure team, said, “The U.S. oil industry is undergoing a massive transformation. The Shale Revolution has moved the U.S. from a crude importer to a significant crude exporter. We are pleased to partner with Crimson through this remarkable growth period.”

Crimson is actively expanding U.S. crude export capacity, including development of the Swordfish Pipeline. The binding open season for the Swordfish Pipeline is underway and, once complete, will utilize existing Crimson assets to provide much-needed near-term connectivity for shippers between St. James and Raceland, Louisiana to export markets via the Louisiana Offshore Oil Port LLC (LOOP) terminal facility in Clovelly, Louisiana.

Crimson is committed to pipeline safety and to applying technologies and best practices to ensure its pipelines are properly monitored and maintained for the benefit of its customers and communities.

Market Overview

U.S. pipeline capacity and export infrastructure has not kept pace with the recent significant increase in domestic crude production. The U.S. added over 1 million barrels a day of crude production in 2018 and is currently producing a record 11 million barrels per day, according to the U.S. Department of Energy. Experts agree that meaningful investment is required to accommodate new crude flows and ensure these volumes have market access. New pipelines need to be built, existing pipelines reversed and export infrastructure constructed.  Since the U.S. government lifted its ban on crude exports in December 2015, the total volume of crude exported by U.S. producers has reached as high as 3 million barrels per day, estimated by the U.S. Energy Information Administration.

* * * * *

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.

Web: www.carlyle.com
Videos: www.youtube.com/onecarlyle
Tweets: www.twitter.com/onecarlyle
Podcasts: www.carlyle.com/about-carlyle/market-commentary

About Crimson Midstream Holdings, LLC
Crimson Midstream Holdings, LLC is a provider of crude oil transportation and storage services in California, Louisiana and offshore Gulf of Mexico. Crimson safely and reliably operates more than 2,000 miles of pipeline transporting approximately 400,000 barrels of crude oil per day to end users. Crimson is led by a management team with deep experience in pipeline operations and management. For further information on Crimson, visit the company’s website at http://www.crimsonmidstream.com/.

Contact

The Carlyle Group
Liz Gill: +1 (202) 729-5385
elizabeth.gill@carlyle.com

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InfraRed Capital Partners and Progressum reach agreement regarding 1.5GW solar photovoltaic in Spain

InfraRed Capital Partners

InfraRed Capital Partners (“InfraRed”) has signed a sale and purchase agreement with Progressum Energy Developments (“Progressum”) to acquire a 1.5GW subsidy-free, solar photovoltaic portfolio in Spain, known as Giralda. The portfolio is being developed by Progressum, part of the Bester Group, and comprises a number of utility-scale plants located in the regions of Andalusia and Castile La Mancha in Southern Spain.

Progressum’s CEO, Marco Antonio Macías, has commented “InfraRed and Progressum are long term partners and have a track reccord of collaborating to successfully deliver solar parks in Mexico. We are excited about this agreement, as it will open up a new dimension to the development, construction,  operation and maintenance activities of the Bester Group in Spain. We look forward to developing and building the Giralda portfolio which, once operational, will make an important contribution to the provision of clean and affordable energy in Spain.”

Dulce Mendonça, Investment Director and transaction lead for InfraRed, said: “We are delighted to be partnering with Progressum on the Giralda portfolio. Spain benefits from excellent natural conditions for solar deployment in a non-subsidised environment, and with this acquisition we aim to combine a large-scale investment opportunity with our financing and PPA structuring expertise in sustainable energy.”

This is the seventh investment of InfraRed Infrastructure Fund V – a 12-year term OECD focused development infrastructure fund with US$1.2bn of committed capital and a mandate to invest in three main areas: (i) transportation, economic and social infrastructure, (ii) renewable and sustainable energy generation and (iii) energy supporting infrastructure.

 

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SOVEREIGN backs the MBO of UK energy broker UTILITY BIDDER

Sovereign Capital

Sovereign Capital Partners, the UK private equity Buy & Build specialist, is delighted to announce the management buy-out of Utility Bidder, a leading energy broker, offering energy procurement services to UK, SME customers.  This is the second MBO Sovereign has backed in recent months and follows that of Asset Control, the financial data management business. Sovereign has partnered with the management team of Utility Bidder to further develop the business through a strategy of organic and acquisitive growth.

Founded in 2009, and headquartered in Corby, England, the business employs over 100 staff and has a growing sales office in Manchester. The company currently brokers energy and other utilities contracts to over 14,500 SME clients across a number of industry sectors in the UK.

Utility Bidder has performed strongly growing sales by over 40% in the current year. Sovereign will work with the management team to support the growth strategy in what is an exciting market. The team is led by an experienced CEO, Chris Shaw; Sovereign has augmented the management team with the appointment of Mark Wood, formerly CEO of Axa UK, as non-executive Chairman. Founders James Longley and Sally Martin remain with the business, James as Utility Bidder’s MD.

“We are delighted to have Sovereign’s backing.” said Chris Shaw. “We operate in an exciting market with great opportunities. Sovereign has a tremendous track-record of backing high-quality growth businesses that have the potential to significantly scale-up. We look forward to further developing our product offering and growing our client base with Sovereign’s investment and partnership.”

Jeremy Morgan, Partner at Sovereign, said, “We are very pleased to be supporting this business and strong management team in what is a burgeoning market. Utility Bidder has already achieved tremendous success and enjoys established relationships with both its SME customer base and its energy suppliers.  We look forward to working with Chris and the team to help take this top ranked energy broker to the next stage of growth.”

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Investor comments on ABB

Investor

Investor comments on ABB

2018-12-17 07:25 GMT+01

  • After successful transformation, now right time to divest Power Grids
  • Supports the board’s decision on new simplified organization

As announced today, ABB will divest the majority of its Power Grids division to Hitachi Ltd. As ABB’s largest shareholder, Investor fully supports this transaction.

“As a long-term, engaged owner, we focus on what we believe is best for each individual company, supporting them to become and stay best-in-class. This includes continuously evaluating, and if needed, adapting the corporate structure.

We have supported the ABB board and management’s decision, and execution, on its strategic direction, not the least the transformation of Power Grids. Over the past years, the division’s performance has improved in terms of higher quality, higher margins as well as reduced project risks, creating long-term value. We fully support the board’s decision on the next step. The divestiture of Power Grids to Hitachi is industrially logical, takes place at the appropriate time and allows ABB to focus on its automation and electrification businesses”, comments Johan Forssell, President and CEO of Investor.

In addition, ABB today also announced a new organizational structure.

“We fully support the organizational changes announced today. We are confident that simplification and decentralization, with a high degree of delegation of responsibility and accountability, are necessary steps to further improve ABB’s performance.
Having strengthened our ownership position over the past few years, we will continue to work actively to support ABB in its long-term value creation”, says Johan Forssell.

Investor is ABB’s largest owner, holding 10.7 percent of the capital and votes.

For further information:

Viveka Hirdman-Ryrberg, Head of Corporate Communication and Sustainability: +46 8 614 2058, +46 70 550 3500

Magnus Dalhammar, Head of Investor Relations: +46 8 614 2130, +46 73 524 2130

Our press releases can be accessed at www.investorab.com

Investor, founded by the Wallenberg family a hundred years ago, is the leading owner of high quality Nordic-based international companies. Through board participation, our industrial experience, network and financial strength, we strive to make our companies best-in-class. Our holdings include, among others, ABB, Atlas Copco, Ericsson, Mölnlycke and SEB.

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Emera to Sell New England Gas-Fired Generation Facilities to The Carlyle Group for US$590 Million

Carlyle

  • Proceeds from the sale will be used to reduce Emera corporate level debt and support Emera’s capital investment opportunities within its regulated utility businesses
  • Increases Carlyle’s New England power generation portfolio by 1,100 megawatts
  • Transaction is expected to close in first quarter 2019

HALIFAX, Nova Scotia – Emera Inc. (TSX:EMA) has agreed to sell its three natural gas-fired generation facilities in New England, known as Bridgeport Energy, Tiverton Power and Rumford Power, to an affiliate of The Carlyle Group for US$590 million (C$780 million). Together, the facilities have the capacity to generate approximately 1,100 MW.

“This transaction, part of the three-year funding plan we introduced during our third quarter earnings results,  increases Emera’s financing flexibility to capitalize on our regulated growth opportunities today and in the future,” said Scott Balfour, President & CEO of Emera. “Our New England facilities delivered solid financial results during the five years of our ownership, and distinguished themselves with industry leading safety and operational performance. I want to thank our dedicated teams whose expertise and commitment produced those achievements. The Carlyle Group is highly regarded in the industry and well positioned to lead these facilities to continued success.” 

Matt O’Connor, Carlyle Group Managing Director and Head of Carlyle Power Partners, said, “Through this acquisition, Carlyle Power Partners will increase its generation capacity in the attractive New England market, making us one of the largest owners of power generation facilities in the region. We look forward to leveraging our existing market knowledge to create additional value for Bridgeport Energy, Tiverton Power and Rumford Power, building on their already strong track records of operational excellence.”

Cogentrix, The Carlyle Group’s management platform in the power generation space, will assume asset management, operations and maintenance and energy management responsibilities for the portfolio. Cogentrix currently manages Carlyle Power Partners’ fleet of power plants in the Northeast U.S. totaling approximately 1,400 megawatts, and will bring its management best practices to the portfolio.

The transaction is subject to the regulatory approvals of the United States Federal Energy Regulatory Commission, and under the provisions of the Hart-Scott-Rodino Antitrust Act, and is expected to close in first quarter 2019.

J.P. Morgan served as Emera’s financial advisor on the transaction.

* * * * *

About Emera Inc. 
Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $30 billion in assets and 2017 revenues of more than $6 billion. The company invests in electricity generation, transmission and distribution, gas transmission and distribution, and utility energy services with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F. and EMA.PR.H. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional Information can be accessed at www.emera.com or at www.sedar.com.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.

Web: www.carlyle.com 
Videos: www.youtube.com/onecarlyle 
Tweets: www.twitter.com/onecarlyle 
Podcasts: www.carlyle.com/about-carlyle/market-commentary

Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws with respect to, among other things, the completion of the sale of Bridgeport Energy, Tiverton Power and Rumford Power. The words “anticipates”, “believes”, “budget”, “could”, “estimates, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “schedule”, “should”, “targets”, “will”, “would” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words.   The forward-looking information includes, but is not limited to, statements regarding (i) the risk that Emera may be unable to obtain governmental and regulatory approvals required for the proposed sale; (ii) the risk that other conditions to the closing of the proposed sale may not be satisfied; and (iii) the timing to consummate the sale.   There can be no assurance that the proposed sale will be completed, or if it is completed, that it will close within the anticipated time period.  By its nature, forward-looking information requires Emera to make assumptions and is subject to inherent risks and uncertainties.  These statements reflect Emera management’s current beliefs and are based on information currently available to Emera management. Additional detailed information about these assumptions, risks and uncertainties is included in Emera’s securities regulatory filings, including its Annual Information Form, annual and interim Management’s Discussion and Analysis, and in the notes to Emera’s annual and interim financial statements, which filings can be found on SEDAR at www.sedar.com.

Emera Inc.
Investor Relations

Erin Power, 902-428-6760
erin.power@emera.com

Or

Ken McOnie, 902-428-6945
ken.mconie@emera.com

Media

902-222-2683
media@emera.com

Christa Zipf
The Carlyle Group
212-813-4578

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A three-cluster symbiosis as a driver of exports in Kymenlaakso

Finnvera

19.11.2018

Port operations, the forest industry and the energy sector form a close-knit union in Kymenlaakso. In the coming years, the clusters’ investments will rise to even hundreds of millions of euros. The EUR 100 million LNG terminal being built in Hamina is Wärtsilä’s and its partners’ investment in new energy technology.

The ports of Kotka and Hamina merged their operations seven years ago. This strengthened HaminaKotka’s position as Finland’s largest general port, and now 18 per cent of Finnish exports of goods pass through the port.

Nearly 17 million tonnes of goods leave from or arrive in HaminaKotka this year. The forest industry accounts for approximately 40 per cent of this.

After a long time, investments are also increasing. According to Kimmo Naski, CEO of the Port of HaminaKotka, investments started two years ago.

“At the moment, the ongoing projects include the construction of the largest pulp centre in the Nordic countries in Mussalo, Kotka, and the giant module and LNG projects in Hamina. There is also the Nord Stream 2 gas pipeline project under way in Mussalo, with HaminaKotka as its central port,” says Naski.

The total value of all the investments approaches EUR 200 million. Markus Laakkonen, Finnvera’s Regional Director of Southern Finland, speaks about the rise of traditional industry in Kymenlaakso.

“Even ten years ago, the atmosphere was completely different, with paper mills being closed down. The forest industry has undergone a major transformation. UPM is currently planning to build a new biorefinery in Kotka. Upon realisation, it would be a billion-class project,” notes Laakkonen.

A close-knit network of enterprises has emerged around the Port of HaminaKotka, consisting of enterprises operating in the forest industry, the chemical industry and the energy sector as well as small-scale industry and subcontracting chains.

Merely in the port area, there are approximately 170 enterprises, and the cluster employs, directly and indirectly, 7,000 people. When the forest industry is included, the impact on employment multiplies.

“Subcontracting enterprises have many investment projects under way. Now it’s time to replace machinery and equipment. In addition, the number of transfers of ownership is increasing,” says Laakkonen.

Getting the LNG infrastructure in order

During the past few years, LNG, or liquefied natural gas, has adopted a more prominent role especially in ship traffic. The main owners of the LNG terminal being built in Hamina are Hamina Energy Ltd and the Estonian enterprise Alexela. The terminal supplier Wärtsilä is a minority investor.

Tuomas Haapakoski, Director, Financial Services at Wärtsilä, says that one of the background factors for the popularity of LNG is the fact that emission limits are becoming stricter. A global sulphur limit will enter into force in ship traffic in 2020.

“LNG is also linked with electricity generation and consequently with Wärtsilä’s gas power plants as LNG is storable energy. The role of gas power plants is changing as the share of renewable energy, such as solar and wind power, increases in electricity generation. Renewable energy needs to be complemented with flexible load following power that can be taken into use quickly, using cleanly burning natural gas,” comments Haapakoski.

According to Haapakoski, the terminal includes a 30,000-cubic-metre storage tank where liquefied natural gas is received from a ship. From the terminal, LNG is delivered to clients with lorries and ships or re-gasified and delivered via the natural gas network.

The total terminal investment amounts to approximately EUR 100 million. The Hamina terminal is Wärtsilä’s third LNG terminal project in Finland. The other two are in Tornio and Raahe.

“It’s all about building the basic LNG infrastructure in Finland, a project we want to be involved in. The terminals contribute to Wärtsilä’s strategy of making maritime traffic more environmentally friendly as LNG is low-emission ship fuel. We developed multi-fuel ship engines ages ago, but LNG distribution networks are only just developing,” explains Haapakoski.

The Export Credit Guarantee Act amended – investments in Finland

In financing the terminal investment, Wärtsilä and other owners took advantage of the amendment to the Export Credit Guarantee Act four years ago.

Before the legislative amendment, Finnvera could support Finnish enterprises by granting export credit guarantees and export credits for foreign projects. Now the export credit guarantee can also be granted for domestic projects if the investment promotes exports.

“I believe that this is useful for many enterprises. After all, foreign competitors offer export financing solutions also for projects to be carried out in Finland. It would have been a bad situation indeed if the selection of a domestic supplier had ruled out the opportunity of using export financing for investments in Finland,” notes Haapakoski.

Finnvera’s financial instrument for foreign investments goes by the name of the Buyer Credit Guarantee. It is a security that is granted for a credit received by the buyer and that protects the creditor, usually the bank, from risks related to repayment. Arranging the financing for the buyer helps the Finnish export company to secure the deal.

A similar guarantee arrangement for domestic investments is known as a Finance Guarantee.

“The Hamina terminal is an investment that promotes exports, in particular as LNG becomes more common as ship fuel. HaminaKotka is one of the largest ports in Finland, and it has many export companies as its clients,” says Riitta Leppäniemi, Finnvera’s Finance Manager.

According to Leppäniemi, there have been few financing projects of this kind in the last four years. The best-known of these is the bioproduct mill built in Äänekoski that was a billion-class investment.

FACTS: Kymenlaakso comes fourth
  • Kymenlaakso is the fourth largest export region in Finland after Uusimaa, Varsinais-Suomi and Pirkanmaa.
  • According to Customs’ statistics from last year, the region had nearly 350 export companies.
  • The forest industry is still essential for the region, and Southeast Finland is the largest forest industry cluster in Europe. In Kymenlaakso, there are many pulp, paper and board mills as well as sawmills.
  • The main logistics artery consists of the E18 motorway, Finland’s largest general port HaminaKotka and the rail network.
  • Last year, ships transported nearly 11 million tonnes of goods from the Port of HaminaKotka. This represented a year-on-year increase of 12 per cent. A total of 3.8 million tonnes of goods arrived in HaminaKotka.
  • Read more about credit risks in export trade here.
  • Read more about our working capital for export products here.
  • Read more about financing for the buyer here.

Caption: This LNG tanker represents modern maritime traffic. The Hamina terminal is Wärtsilä’s third LNG terminal project in Finland. The other two are in Tornio and Raahe. “It’s all about building the basic LNG infrastructure in Finland, a project we want to be involved in” says Wärtsilä’s Director of Financial Services Tuomas Haapakoski.

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Iona Capital invests in new AD biogas plant in South West Scotland

Iona Capital

Iona Capital (“Iona”), a specialist investor in low carbon infrastructure has financed the construction and operations of a new 8.8MW anaerobic digestion plant located in Dumfries and Galloway.

The plant has pre-qualified under the Non-Domestic Renewable Heat Incentive (RHI) which was introduced in 2011 to incentivize the uptake of renewable heat in industry and businesses. Biomethane injection to grid is making a significant contribution in meeting the Government’s renewable heat targets.

The principal feedstock will be waste slurries generated from local dairy and beef farming operations, underpinning the plant’s compliance with OFGEM’s revised targets on sustainability.

The plant will have the capacity to generate 8.8MW of base load renewable energy which is sufficient to heat circa 7,000 households on an annual basis.  The plant is being built by Bioconstruct GmbH, one of the leading European AD equipment suppliers. The biomethane will be upgraded into the local gas distribution network, controlled by Scotia Gas Networks.

The UK has set ambitious targets for renewable energy – 20% of the country’s energy generation by 2020 should be “green” power.  Since its launch in 2011, Iona has financed 21 renewable energy projects in England, Scotland and Wales, all of which supply energy to the local grid networks. This latest project follows on from two earlier successful Biomethane to Grid projects completed in Scotland at Keithick and St Boswells. The three plants will have a combined capacity in excess of 20 MW and provide significant operational synergies.

Iona Capital’s main investment focus is within the Anaerobic Digestion, Energy-from-Waste and CHP sectors, and its investors in its LP3 Fund include a number of local authority pension funds.

Nick Ross, Director of Iona Capital said: “Creating a sustainable energy sector is a top priority for the UK and Iona’ s bioenergy projects provide both attractive commercial returns to investors as well as long term social and economic benefits to local communities and future generations.”

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