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

Environmental

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

Maritime Reporter @ 75: The Daily Cartoon

Maritime Reporter & Engineering News was founded by John J. O'Malley (1905-1980) in 1939, and today ranks as the world's largest audited trade publication in the world serving the maritime industry,

Renewable Energy: Schottel Tidal Turbines Ready For Use

In the last months Schottel  successfully tested its hydrokinetic turbines in Strangford Lough, Northern Ireland. The full-scale tests included 260 operating hours under realistic conditions.

News

Coast Guard Foundation to Honor USCG in Miami

The Coast Guard Foundation, a nonprofit organization committed to the education and welfare of all Coast Guard members and their families, announced today that

Sunken Barge Salvage Stops Traffic on Chicago River

The U.S. Coast Guard said it is restricting vessel traffic on the Chicago River to allow for salvage of a sunken barge. All cargo has been removed from the sunken

Weak Oil Threatens US Export of LNG

Plunging global oil prices may turn hopes for cheap liquefied natural gas supplies from the United States into a costly disappointment for Asian buyers who have

Mergers & Acquisitions

B COOL Acquires MEMAC

With the acquisition of MEMAC, B COOL A/S now offers customers one entry to multiple maritime systems – both refrigeration solutions and monitoring of the engine

TRIYARDS Buys into Aluminium Shipbuilding Expertise

TRIYARDS Holdings Limited, an offshore vessel fabrication and engineering solutions provider to the oil and gas (O&G) industry, has added new capabilities, products

Salamander Energy Updates on SONA Transaction

Salamander Energy said it has submitted a draft shareholder circular to the Financial Conduct Authority in relation to previously stated plans to divest of an interest in the Greater Bualuang Area.

Offshore Energy

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

Statoil: New Oil in the Grane Area

Statoil has together with PL169 partners proved new oil resources in the D-structure in the vicinity of the Grane field in the North Sea.   Well 25/8-18 S, drilled by the rig Transocean Leader,

Offshore Oil: Lamprell Completes Caspian Sea Drilling Unit

UAE-based Lamprell said that it completed construction of the second Caspian Sea jackup drilling rig, Mercury, for service in the Caspian Sea.   "I am delighted

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1700 sec (6 req/sec)