Glennmont Partners have continued their series of conversations with institutional investors with two more seminars in Frankfurt and Munich.
Both seminars were structured to give exclusive and insightful access to key players who manage risk and create value on behalf of project funders. As in previous events, the seminars were focussed on a narrow theme, in this case the means of managing risk in the cases of biomass and offshore wind related investing.
Emilio Lopez, the CEO of Gestamp Biomass, is one of the world’s leading proponents of biomass power generation and has managed the development, construction and operation of plants across several continents.
Emilio demonstrated that a considered and structured approach to biomass project development can reduce risks and deliver a secure cash generative project. Emilio’s case was supported directly by Paul Battelle, the Director of Infrastructure and Energy at Deutsche Bank. Paul showed a number of case histories where the bank was able to add value through creative financing driven by secure cash flows.
In the offshore wind field, Peter Esmann, one of Siemens Offshores Leading Product Managers, showed how lowering risks and reducing the cost of construction was driving down the cost of energy generated from offshore wind.
Peter was able to demonstrate the extreme conditions that the components of offshore wind turbines are subjected to in order to provide security of production for investors. His case was backed up by Andrew Cole, Associate Director at Wood Group – one of the world’s leading energy engineering companies. Andrew systematically demonstrated that all risks associated with offshore wind are laboriously assessed in the process of due diligence for investment.
The seminar was able to reinforce the point that, while offshore wind and bioenergy are perceived as above average risk for investors, by adopting a considered and conservative approach and by working with highly experience counterparties, it is possible to enhance returns without taking on a disproportionate level of risk.