Private Equity

Impact Capital Partner’s Overview

FOR INSTITUTIONAL INVESTORS ONLY – This Independent Power Producer (IPP), is an energy solutions provider based in the USA with operations in West Africa. They have transitioned from heavy oil and diesel to Liquid Natural Gas (LNG) + their long-term ambition is to deliver energy solutions exclusively from low carbon resources. Their operations reflect their firm commitment to increasing access to reliable, sustainable and cost-effective electricity and natural gas in Africa + they are actively seeking to expand their operations across the African continent with a vision to be the leading sustainable energy solution provider in Africa.

Established IPP with Successful Operating History*

Mission

• Develop sustainable energy solutions in Africa
• Emphasize the training and development of local expertise
• Utilize appropriate technologies in a safe, efficient and reliable manner

Vision

• To be the leading sustainable energy solution provider in Africa

Existing Power Plants*

Existing Midstream Assets*

Sustainability

Basing their operations on transition technologies and fuels, as an interim step towards their long term objectives, allows this IPP to develop the basic energy infrastructure required to provide clients access to reliable, sustainable and cost-effective energy. Over the next decade, they plan to convert their assets from transition solutions to low carbon energy solutions.

• Transition Phase
  • Expansion – Building and operating the basic energy infrastructure (natural-gas-fired power generation, natural gas midstream solutions and electricity transmission solutions) to deliver reliable, sustainable and affordable electricity and natural gas to their clients.
  • Conversion – Facilitating the conversion of clients’ equipment (stationary and mobile) from heavy hydrocarbons to natural gas fuels as a transition to hydrogen fuels.
  • Development – Developing wind and hydro-electric energy solutions to be built and operated during the Low Carbon Phase.
• Low Carbon Phase
  • Renewables – Switching a majority (>85%) of their electricity solutions to PV solar, wind and hydro-electric solutions.
  • Hydrogen – Switching client equipment (stationary and mobile) to hydrogen fuels.
  • Batteries – Deploying alternative batteries such as cryogenic storage and pumped hydro.

Additional Sustainability & Impact Highlights

• Over the past 13 years of operation, this IPP has transitioned from heavy oil and diesel to Liquid Natural gas (LNG). LNG is considered a cleaner option to other fossil fuel resources, as it releases up to 50% less CO2 than coal and 20-30% less than oil. Additionally, compared to other types of fuel, there are negligible sulfur dioxide (SO2), Nitrogen Oxide (NOx), mercury (Hg), and particulate emissions.-
• This IPP has significantly reduced the stress to the National power grid, and is now a net contributor to the grid.
• Community – By developing natural gas infrastructure they seek to improve the livelihoods of stakeholders in their communities through provision of reliable, affordable and sustainable energy.
• Community Engagement – Their numerous community engagement activities enables them to develop strong relations with members and representatives of these municipalities, including:
  • Training of locals to work in our operation areas
  • Developing alternative livelihood programs for project affected persons
  • Donating to local community projects and organizations
  • Holding frequent youth career and empowerment workshops
  • As an expression of the firm’s commitment to the environment, they have planted over 150,000 teak stumps along their natural gas pipeline as of July 2020, in order to reclaim the land. The exercise engages the surrounding communities by recruiting and employing locals for the planting of the teak, showing the firm’s commitment to serving and positively impacting the communities in which it operates.
• Employment – They are committed to supporting employment in their local communities and fostering a culture of accountability and transparency, which strengthen the organization and increases productivity.

Socio-Economic Influence

• The pipeline project will greatly impact on the socio-economic status of the local communities, the municipal/district and the Western Region as a whole. The Western Region is one of the deprived regions of the country with low coverage of social amenities as well as a low standard of living. It is anticipated that social structures, income levels and economic wellbeing, infrastructure (roads, education, and health) will be significantly improved in the project areas.
• As is common with the advent of any project, it is expected that the gas pipeline project will create employment opportunities directly and indirectly by stimulating the local economy. The hospitality industry, light industry, trading and banking are all likely to thrive during the implementation of the gas pipeline project. The catchment area competencies are needed, hence apart from the specialized areas dealing directly with oil and gas there is labor which will be sourced directly from these communities.

UN Sustainable Development Goals

• SDG 5: Gender Equality
• SDG 7: Affordable & Clean Energy
• SDG 8: Decent Work & Economic Growth
• SDG 10: Reduced Inequalities

Transaction Details*

Additional Resources

• IPP’s Name & Website
• IPP’s Sustainability & Low Carbon Ambition Statement – Upon Request
• Access to DATA ROOM – Upon Request
  • Draft Term Sheet
  • Information Memorandum
  • Financial Model
  • Sustainability & Low Carbon Ambition Statement