Global Clean Energy Investments Fall Again

MarineLink.com
Thursday, January 16, 2014
  • New global clean energy investment decreases 20% in 2013 to $212 billion
  • Project finance posts 22% quarterly increase to $34.3 billion - wind dominates
  • Public market issuances reach ten-quarter high of $4.5 billion


Clean Energy Pipeline, the online daily financial news and data service dedicated to the clean energy sector, released its preliminary analysis of venture capital, private equity, project finance, mergers and acquisitions and public markets activity during 4Q13 and 2013.

New investment in the global clean energy sector totalled $58.2 billion in 4Q13, a 15% increase on the $50.7 billion invested in 3Q13 but a 21% decrease on the $74.1 billion recorded in the corresponding period in 2012. Despite the quarterly increase, total investment throughout 2013 decreased 20% year-on-year to $212 billion. Total investment in the global clean energy sector has now fallen for two consecutive years.

“We expected investment levels in 2013 to be disappointing” commented Douglas Lloyd, CEO of Clean Energy Pipeline. “With low gas prices in the US and ongoing policy uncertainty globally, it is no surprise that investment declined in 2013.”

Project finance posts 22% quarterly increase due to large European wind deals


Project finance totalled $34.3 billion in 4Q13, a 22% increase on the $28.2 billion recorded in the previous quarter but a 27% decrease on the $47.3 billion invested in 4Q12. Despite the quarterly increase, project finance throughout 2013 declined 25% year-on-year to $119 billion, the lowest annual investment volume since 2009.

The quarterly increase was underpinned by a 26% surge in European wind project finance to $5.2 billion. This was due to $1.3 billion debt financing allocated to four large offshore wind transmission assets (Greater Gabbard, HelWin1, SylWin1 and DolWin1), $697 million debt finance being invested in two offshore wind farms (London Array and Gemini), and the refinancing of some large onshore wind farm portfolios, including the $525 million loan secured by Infinis Ltd for its 274 MW portfolio of operational UK assets.

In the US, wind energy project finance posted a 6% quarterly increase to $2.7 billion as a series of utility-scale wind farms raised finance to ensure they could commence construction by the end of 2013, thereby qualifying for the Production Tax Credit. Notable deals included the debt and tax equity financing of Invenergy’s 288.6 MW Miami Wind Energy Centre in December 2013 and its 200.6 MW Prairie Breeze wind farm in October 2013 (value undisclosed). This contributed to project finance across the US increasing 22% quarter-on-quarter to $5.5 billion.

Public markets activity reaches ten-quarter high

Clean energy companies secured $4.5 billion on the public markets in 4Q13 through a mixture of IPOs, secondaries and convertible notes. This is the largest quarterly volume raised since 3Q11. This contributed to public markets activity trebling year-on-year to $13.0 billion in 2013.

Notable companies to execute deals included: Meridian Energy, which raised $1.6 billion through its IPO on the New Zealand Stock Exchange in October 2013; Darling International, which secured $760 million through a secondary offering on the New York Stock Exchange in December 2013; and China Everbright International, which netted $473 million through a secondary offering on the Hong Kong Stock Exchange in December 2013.

M&A deal values increase as wind activity surges

Clean energy M&A activity totalled $12.6 billion in 4Q13, a 6% increase on the $11.9 billion recorded in 3Q13 but a 39% decrease on $20.6 billion compared with the corresponding period in 2012. The number of transactions was high by historical standards - some 249 M&A deals were announced in 4Q13, an 11% increase on the quarterly average number of announced deals (225) recorded since the beginning of 2009.

Significantly, the value of wind M&A activity more than doubled to $3.4 billion in 4Q13 due to a series of acquisitions of large portfolios of operating wind farms in Europe. Notable deals include PensionDanmark’s acquisition of a 49% stake in a 273 MW portfolio of six operating UK-based wind farms for $251 million and Crédit Agricole Assurances’ acquisition of a 50% stake in a 440 MW wind farm portfolio (value undisclosed).

Venture capital and private equity still struggling


Venture capital and private equity investment in clean energy (excluding buyouts) totalled $1.5 billion in 4Q13, a 29% quarterly increase. However, investment levels are still 38% below the quarterly average value during the past five years ($2.4 billion). This contributed to investment decreasing 24% year-on-year to $6.1 billion in 2013. Annual investment has now fallen for two consecutive years from a peak of $15.6 billion in 2011.

The dramatic fall in activity is principally due to the absence of capital intensive investments in solar manufacturing companies. Only $106 million was invested in solar companies in 4Q13, substantially below the $633 million average quarterly investment volume tracked between 2009 and 2011.

cleanenergypipeline.com
 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Three European firms win Angola deepwater deals

Three European companies have won contracts for almost half the value of Angola's $16 billion ultra-deepwater Kaombo oil project, confirming a trend toward bigger

Litigation Can Cost Shipbrokers an Arm & a Leg

A survey of London solicitors by specialist intermediaries insurer ITIC has highlighted the high cost of litigation for shipbrokers and others seeking judgment in the English courts,

Scorpio Tankers' Latest Sale & Purchase Deals

Scorpio Tankers says it recorded a gain of US$51-million from the sale of the 7 VLCC newbuilding contracts announced earlier. In March 2014, the Company received

Environmental

Update: Spill Response Continues in Miami

U.S. Coast Guard crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami Wednesday, following a leak discovered aboard the 95-foot tug Neptune Tuesday night.

Collision, Grounding and Anchor Draggings in Chesapeake Bay

The U.S. Coast Guard is working with local response agencies and the Virginia and Maryland Pilots Tuesday after receiving a report of a collision between two ships

USCG: Deepwater Horizon Response is Far from Complete

The U.S. Coast Guard federal on-scene coordinator (FOSC) for the Deepwater Horizon Response completed the transition to the “Middle Response” (“Middle

Energy

Petrobras, Mitsui Study South Brazil LNG Import Terminal

Brazil's state-run oil company Petroleo Brasileiro SA and Japanese trading house Mitsui Corp will study building a liquefied natural gas (LNG) terminal in the country's southernmost state,

USCG: Deepwater Horizon Response is Far from Complete

The U.S. Coast Guard federal on-scene coordinator (FOSC) for the Deepwater Horizon Response completed the transition to the “Middle Response” (“Middle

ISS Network Expands to Venezuela

Inchcape Shipping Services (ISS) has expanded its network in Central and South America with the opening of ISS Venezuela in Puerto La Cruz. Port Manager, Aldo M.

News

US Sens. Kaine and Reed Visit Newport News Shipbuilding

Huntington Ingalls Industries (HII) hosted U.S. Sens. Tim Kaine (D-Va.) and Jack Reed (D-R.I.) Tuesday for a tour of the company's Newport News Shipbuilding division.

Petrobras, Mitsui Study South Brazil LNG Import Terminal

Brazil's state-run oil company Petroleo Brasileiro SA and Japanese trading house Mitsui Corp will study building a liquefied natural gas (LNG) terminal in the country's southernmost state,

Update: Spill Response Continues in Miami

U.S. Coast Guard crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami Wednesday, following a leak discovered aboard the 95-foot tug Neptune Tuesday night.

Mergers & Acquisitions

Colfax's Acquisition of Victor Technologies Complete

ESAB has announced that Colfax Corporation has completed the previously announced acquisition of Victor Technologies Holdings, Inc. Victor is a preeminent global manufacturer of cutting,

ThyssenKrupp in Talks to Sell Swedish Shipyard to Saab

ThyssenKrupp is in talks to sell its Swedish marine defence unit to Saab after failing to reach a deal with Sweden for a new generation of submarines as the country

Long Beach Dismisses Proposed Los Angeles Merger

A proposal by the LA 2020 Commission to merge the ports of Los Angeles and Long Beach – the two busiest container ports in the US – has been slated by Long Beach

Wind Power

Three NOAA scientists honored by White House

The White House yesterday awarded three NOAA scientists with Presidential Early Career Awards for Scientists and Engineers. The award is the highest honor given

Pioneering Tech for Offshore Wind Farm Maintenance

James Fisher Renewables pioneers trial of innovative Ship-to-Turbine Oil Change System James Fisher Renewables conducted an innovative trial of Ship-to-Turbine (STT),

Act Fast To Curb Global Warming, Or Extract CO2 From Air - UN

Faster action is needed to keep global warming to agreed limits and delays until 2030 could force reliance on technologies to    extract greenhouse gases from the air, a U.

Offshore Energy

USCG: Deepwater Horizon Response is Far from Complete

The U.S. Coast Guard federal on-scene coordinator (FOSC) for the Deepwater Horizon Response completed the transition to the “Middle Response” (“Middle

Three European firms win Angola deepwater deals

Three European companies have won contracts for almost half the value of Angola's $16 billion ultra-deepwater Kaombo oil project, confirming a trend toward bigger

GoM Drill Rig Damaged, Coast Guard Monitoring

The U.S. Coast Guard (USCG) is overseeing response efforts, as the offshore drilling rig ENSCO 8506 began taking sea-water into a ballast tank after being hit by

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1280 sec (8 req/sec)