Tag Archives: Energy

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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30
Jan

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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CVC has signed a preliminary agreement for the sale of PKP Energetyka

CVC Capital Partners

CVC Capital Partners Fund VI (“CVC”) has signed a preliminary agreement for the sale of PKP Energetyka, an energy distributor for the Polish railway sector and provider of traction network maintenance services, to PGE, the state-controlled- public power company and the largest power producing company in Poland for an EV of PLN 5,944.5 million. The transaction is subject to the standard regulatory approvals and depends on the conclusion of the legal dispute regarding the privatization of PKP Energetyka and obtaining consents from entities providing financing.

PKP Energetyka is one of the largest energy companies in Poland, responsible for the distribution of over 4 TWh of electricity annually, which is 2.9% of all energy in Poland. The company manages and develops critical infrastructure for Polish rail transport has and maintains 21.5 thousand km of power lines and owns over 800 substations, employing over 4,000 people.

During CVC’s ownership over the last seven years PKP Energetyka has been consistently implementing cutting-edge technology to improve the quality, safety and efficiency of its operations. The company operates a Workforce Management system, advanced data analytics systems, artificial intelligence-based algorithms to support the safety of the distribution network and rail traffic, as well as mobile and virtual training solutions. PKP Energetyka is highly technologically advanced, as exemplified by Europe’s largest traction energy storage facility in Garbce near Wroclaw, further supported by innovative hydrogen technology developed jointly with Polish scientists. The company’s transformation would not have been possible without the commitment of its employees, which is currently at almost 70% (with the Polish average at 48%). This is confirmed by receiving the Top Employer certificate four years in a row (2019-2022).

Quotes

We have carried out a complex transformation of the company over the past seven years. Through c.PLN 4 billion capex investments and value-creation programs, we have transitioned it from an analogue world to a digital one.

Krzysztof KrawczykPartner, CVC Capital Partners

Krzysztof Krawczyk, Partner at CVC Capital Partners, commented: “We have carried out a complex transformation of the company over the past seven years. Through c.PLN 4 billion capex investments and value-creation programs, we have transitioned it from an analog world to a digital one. This has allowed us to improve operational parameters, such as reducing the network outages from 331 in 2015 to 14 in 2021 and improving SAIDI power outage index by more than 3 times.

István Szőke, Managing Partner at CVC Capital Partners, added: “We are handing over the company in an excellent condition – today PKP Energetyka is fully ready to be the backbone of the transformation of the railroad power industry, crucial for the development of the entire sector, and has huge potential for further long-term development.”

Wojciech Orzech, President of the Management Board of PKP Energetyka, said: “The recent years of PKP Energetyka’s continuous growth are no coincidence. This is the result of implementing a carefully planned company transformation process. It would not have been possible without the huge commitment of the entire team, which believed in the vision of development and joined its co-creation and implementation from the very beginning. Quality, safety, commitment, efficiency – these four values have accompanied us from the beginning of the transformation and have been the foundation for the development of PKP Energetyka.”

The digital transformation allows the company, and the entire sector, to realize the strategic Green Railway® program, which aims to change the sector’s energy mix to 85% clean energy from renewable sources in 2030, and ultimately to 100%.

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EQT Infrastructure to acquire Madison Energy Investments, a leading integrated US solar distributed generation platform

eqt
  • Transaction builds on EQT’s thematic investment strategy in the renewable energy space, adding a leading integrated renewable distributed generation platform that is a key contributor to the broader energy transition by providing solar and storage energy solutions
  • EQT Infrastructure to support MEI’s next phase of growth by providing ample access to growth capital to drive increased deployment of distributed solar and storage assets, leveraging in-house digital expertise to further optimize the organization, and expanding MEI’s reach across a broader customer base

EQT is pleased to announce that the EQT Infrastructure VI fund (“EQT Infrastructure”) has agreed to acquire Madison Energy Investments (“MEI”) from affiliates of Stonepeak Partners LP (“Stonepeak”).

Founded in 2019 and headquartered in Vienna, VA, MEI is a leading developer, owner, and operator of distributed solar and energy storage projects for commercial and industrial (“C&I”) and community-based (“community”) customers within the US. Since inception, MEI has built a leading portfolio of more than 386MW across the US. The MEI management team brings deep sector knowledge within distributed generation with more than 50 years of combined experience in acquiring, constructing, financing, and operating assets, having deployed more than 800MW across ~500 projects.

Spurred by customer demand and federal/state policy tailwinds, the distributed renewable generation industry continues to experience rapid growth and is a key facilitator of the broader energy transition. MEI’s on-site and proximate distributed energy projects address critical energy supply issues by delivering significant cost savings vs. retail electricity prices and enabling avoidance of transmission constraints for its customers. MEI’s innovative energy solutions are a key driver of C&I and community customers achieving their energy resiliency goals, which is essential for the global energy transition.

EQT Infrastructure will support the MEI management team and platform by providing access to growth capital to accelerate the deployment of distributed solar and storage assets, offering EQT’s in-house digital expertise to further digitize the organization, and expanding MEI’s reach across a broader customer base.

Alex Darden, Partner and Head of EQT’s US Infrastructure platform, said, “EQT Infrastructure has followed the renewable distributed generation market and MEI closely for several years given the strong thematic tailwinds supporting the sector, prior EQT experience in solar development and operation, and MEI’s strong position as a leading integrated platform in the US. The renewable generation sector is an increasingly important part of the energy transition, and we are excited to partner with the MEI team as they build on their strong track record and continue to provide solar and storage energy solutions that are not only better for the environment, but also have tangible cost savings for their customers.”

Richard Walsh, Managing Partner of MEI, said, “We are looking forward to partnering with EQT’s US infrastructure platform. EQT’s team, experience and growth mindset make them the ideal partner to amplify our business in achieving new heights in clean energy. This is an exciting chapter we call ‘MEI 2.0’ – a transformative time in the industry with strong policy tailwinds, compelling economics for our customers and ever-increasing demand for resiliency and ESG solutions. Our focus remains on our customers and our partners to lead them through this critical energy transition. We could not be more excited to lean into the EQT portfolio and accelerate that mission.”

The transaction is subject to customary conditions and approvals and is expected to close in Q1 2023. With the acquisition of MEI, EQT Infrastructure VI (target fund size of EUR 20.0 billion) will be 0-5 percent invested based on its target fund size. The agreement to acquire MEI is the first transaction signed by EQT Infrastructure VI, which means that the fund has been activated and started charging management fees. EQT Infrastructure V is expected to be 80-85 percent invested following recent acquisitions (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) and continues to be in its commitment period but management fees will, following activation of EQT Infrastructure VI, be based on net invested capital.

EQT Infrastructure was advised by Barclays (financial) and Simpson, Thatcher, & Bartlett LLP (legal).

Contact
US media inquiries: Stephanie Greengarten, stephanie.greengarten@eqtpartners.com, +1 646-687-6810
International media inquiries: EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of EQT Infrastructure VI will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.

About EQT
EQT is a purpose-driven global investment organization with EUR 114 billion in assets under management within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence, and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram 

About MEI
Madison Energy Investments develops, constructs, owns, and operates distributed generation assets within the commercial and industrial (C&I) and small utility-scale sectors. The team’s diverse experience has produced best practices across all phases of the industry from origination to asset management. Quality partnerships and the ‘execution mindset’ drives MEI to be the best team in the industry.

More info: www.madisonei.com

About Stonepeak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $51.7 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, and to have a positive impact on the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The firm provides capital, operational support, and committed partnership to sustainably grow investments in its target sectors, which include communications, energy transition, transport and logistics, and social infrastructure. Stonepeak is headquartered in New York with offices in Austin, Hong Kong, Houston, London, and Sydney.

More info: www.stonepeak.com

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Vow and ETEL team up for recycling of end-of-life tyres

Vow ASA announced December 20 that it has teamed up with European Tyre Enterprise Ltd. (ETEL), to deploy Vow’s advanced technology in a complete solution to convert end-of-life tyres to valuable raw material and renewable energy. ETEL has identified a potential demand for more than 300 tyre recycling plants in Europe, North America and Japan.

Murfitts Industries (Murfitts), which is a subsidiary of ETEL and the largest collector and processor of end-of-life tyres in the UK and ETIA, a subsidiary of Vow, have been working together for several years. The parties have developed a full industrial process, in which end-of-life tyres are valorised into a premium recovered carbon black.

ETEL is an international tyre and automotive service, maintenance, and repair group. It is a subsidiary of Itochu, one of Japan’s largest trading companies.

“Together with Murfitts, ETEL and Itochu, we are forming a unique British-French-Japanese-Norwegian partnership. We see a huge opportunity for Vow technology and our combined competence and capacity in a rapidly emerging market. We have agreed to come together to offer a truly sustainable method for handling end-of-life tyres and at the same time decarbonise the tyre industry,” said Henrik Badin, CEO of Vow ASA.

Every year 30 million tonnes of end-of-life tyres are generated globally. As of today, around 30 percent of the tyre composition is virgin carbon black, an important component in tyre manufacturing. Virgin carbon black is produced by cracking fossil oil, a process which generate a large quantity of CO2. Today, all major tyre manufacturers are looking to replace part of the virgin carbon black with recovered carbon black in tyre production.

Pyrolytic oil and syngas, the two other products that are generated in the tyre recovery process are valorised into low carbon fuel or synthetic naphta to generate new low carbon molecules.

“The tyre industry is facing a significant environmental challenge on a global scale, and a great opportunity driven by circular economy incentives. We aim at deploying our solution firstly in Europe, North America, and Japan. Combined these regions represent a market of 8.6 million tons of end-of-life tyre or more than 300 industrial tyre recycling plants,” said Mark Murfitt of Murfitts.

The partnership between Vow and ETEL is defined and agreed in a memorandum of understanding (MoU). The MoU is a continuation of more than two years of successful cooperation and joint operation of a first plant installed at Murfitts’ Lakenheath facility in the UK facility.

According to the MoU the parties will develop a modularised and scalable industrial solution and value chain to turn end-of-life tyres into recovered carbon black and clean energy. Vow will deliver its Biogreen reactor technology to the projects and to the companies that build, own, and operate the plants. ETEL has already identified the first three locations. Applications for building permits for these three sites are well underway.

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Latour invests in Qoitech

Latour logo
2022-12-19

Investment AB Latour (publ) has, through its subsidiary Latour Future Solutions AB, signed an agreement to invest in Qoitech AB (”Qoitech”).

Qoitech offers solutions for energy optimization of products powered by batteries and various energy harvesting technologies. Sales take place on a global basis via digital channels and customers are found in around sixty countries. The business was started within Sony Mobile Communications and a spin-out of the company was carried out in 2019. Qoitech is headquartered in Lund with 9 employees.

“One of our investment areas is in the electrification of industry. Qoitech enables better battery utilization, sustainable electrified products, and shortened lead times in the development phase”, Pelle Mattisson, CEO of Latour Future Solutions AB.

“Qoitech combines hardware instruments with software-based analysis tools in a patented solution that has not been on the market before. With Latour as a long-term partner, we can continue growing both internationally and within new customer segments”, says Vanja Samuelsson, CEO of Qoitech AB and one of the company’s three founders.

The investment will be made via a directed share issue in Qoitech AB, where Latour Future Solutions AB enters as a 21,9% minority owner of the company.

Gothenburg, 19 December, 2022

INVESTMENT AB LATOUR (PUBL)
Johan Hjertonsson, CEO

For further information, please contact:
Pelle Mattisson, CEO, Latour Future Solutions AB, +46 705 80 06 57
Fredrika Ekman, Investment Director, Investment AB Latour, +46 72 584 93 43

Latour Future Solutions is an investment area within Latour that targets sustainability-focused growth companies. The goal is for the investments to create a sustainable society based on all dimensions; environmental, social and economic.

Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listing holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of ten substantial holdings with a market value of about SEK 65 billion. The wholly-owned industrial operations has an annual turnover of SEK 22 billion.

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Apollo Funds Provide $200 Million to WEC Energy Group Renewable Portfolio

Apollo Financing Supports WEC Energy’s Renewables Strategy

NEW YORK and MILWAUKEE, Dec. 15, 2022 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) and WEC Energy Group (NYSE: WEC) today announced that certain Apollo-managed funds (the “Apollo Funds”) have purchased approximately $200 million of senior secured notes of WEC Infrastructure Wind Holding II LLC (“Wind Holding”) in a private placement. Wind Holding, a wholly owned subsidiary of WEC Energy Group, owns the Tatanka Ridge and Jayhawk wind farms, which together provide 340 megawatts of renewable power generation and are fully contracted under long-term PPAs with high-quality offtakers.

Shawn Robinson, Partner and Co-Head of Private Fixed Income at Apollo, said, “We are pleased to provide an investment grade private capital solution to a WEC Energy affiliate on behalf of our clients. This high-quality investment supports significant renewable wind energy generation, and we expect to continue growing our relationship with WEC’s clean energy affiliates.”

Wind Holding is part of WEC Energy Group’s nonutility energy infrastructure business, which has agreements in place for majority ownership interests in wind and solar generating facilities that are capable of producing more than 1,700 megawatts of energy. These projects support WEC Energy Group’s aggressive environmental goals and commitment to building a bright, sustainable future that is affordable, reliable and clean.

For Apollo, the transaction aligns with its cross-platform collaborative approach and focus on private fixed income assets suitable for a broad range of clients. The investment also underscores Apollo’s commitment to driving a more sustainable future, including by funding renewable and energy transition assets and companies.

MUFG served as financial advisor to WEC Energy Group on the transaction. “This is MUFG’s second project finance engagement with WEC, and we look forward to continuing our partnership in support of WEC’s effort to build out its portfolio of renewable-energy projects,” said Fred Zelaya, Managing Director of Project Finance with MUFG.

About Apollo
Apollo is a global, high-growth alternative asset manager. In the asset management business, Apollo seeks to provide its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, Apollo’s investing expertise across its fully integrated platform has served the financial return needs of its clients and provided businesses with innovative capital solutions for growth. Through Athene, Apollo’s retirement services business, it specializes in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Apollo’s patient, creative, and knowledgeable approach to investing aligns its clients, businesses it invests in, its team members, and the communities it impacts, to expand opportunity and achieve positive outcomes. As of September 30, 2022, Apollo had approximately $523 billion of assets under management. To learn more, please visit www.apollo.com.

About WEC Energy Group
WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation’s premier energy companies, serving 4.6 million customers in Wisconsin, Illinois, Michigan and Minnesota.

The company’s principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in the Midwest.

WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 38,000 stockholders of record, 7,000 employees and more than $40 billion of assets.

Apollo Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

WEC Energy Group Contacts
Beth Straka
Senior Vice President – Investor Relations
and Corporate Communications
414-221-4639
Beth.Straka@wecenergygroup.com

Brendan Conway
Director Media Relations
414-221-3728
Brendan.Conway@wecenergygroup.com

MUFG Contact

Assaf Kedem
Vice President, Corporate Communications
(212) 782-4926
akedem@us.mufg.jp


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Source: Apollo Global Management, Inc.

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tepeo raises £10.5 million to transform the way homes are heated

BGF

tepeo, the British designer of the Zero Emission Boiler (ZEB®), has secured £10.5 million in funding to fuel the next stage of the company’s growth and bring it a step closer to its ambition of transforming the way homes are heated.

BGF is leading the round and is joined by tepeo’s existing investors Clean Growth Fund (CGF), Bonheur and Renewable Environmental Investments Ltd, all backing the future of clean, green and affordable home heating.

tepeo’s patented ZEB is a direct plug-n-play replacement for a gas, oil, LPG or electric boiler, and is a low carbon alternative without compromising on performance. Instead of relying on fossil fuels, its proprietary technology is powered by electricity and works like a battery to store heat efficiently until it is needed.

At present, 17% of all UK carbon emissions come from heating our homes. For most people this means that their homes present one of the easiest ways to reduce their carbon emissions significantly. Reducing this figure is a key component in addressing the climate crisis and meeting the UK’s ambitious carbon reduction targets by 2035.

The benefits of a ZEB stretch beyond carbon reduction, tackling local air pollution by eliminating the emission of particulates and other pollutants from domestic boilers. ZEBs have been designed to provide Demand Side Response (DSR) and flexibility services such as frequency response to Distribution Network Operators and National Grid, thereby supporting the needs of an increasingly low carbon electricity grid.

The funding will enable the British firm to develop its Wokingham head office, growing its production, R&D, assembly and commercial teams, as well as expanding sales across the UK. The goal is to decarbonise domestic heating and provide grid stability services that will support the deployment of further renewable generation across the national grid.

Johan du Plessis, founder and CEO of tepeo, said: “In the last twelve months we have launched our first ZEB and received an overwhelming amount of interest from consumers. We’ve tripled the size of the business and built a solid foundation for scale. This investment from BGF and our existing investors will enable us to scale-up our manufacturing and commercial operations, to offer ZEBs to more and more people across the UK and to start making meaningful progress on decarbonising heating. A ZEB is a simple, low carbon, plug ‘n’ play boiler replacement for consumers and will increasingly play a critical role in reducing the cost of the energy transition and stabilising the electricity networks. This funding is a clear vote of confidence in the enormous size of the opportunity ahead of us and our plans for expansion in order to address it.”

Dennis Atkinson, investor at BGF, said: “We are excited to be investing in tepeo, and in doing so, supporting the UK transition to a low carbon economy. Tepeo is at the forefront of the urgent activity being undertaken to reduce emissions from households and their innovative technology has an important role to play in the electrification of heating. tepeo’s ability to store and discharge heat in a cost-effective manner will also prove crucial in delivering this transition in an efficient way, at a time when energy costs are of crucial importance to consumers.  We look forward to working with Johan and his talented team and supporting tepeo to achieve its full growth potential.”

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