Innovative financial instruments for biomass: Requirements and development of a biomass-private equity fund

Developing models in private equity financing as an essential contribution to finance sustainable projects and to launch innovative biomass-technologies in a large scale

This research project aims at developing models in private equity financing which contribute substantially to the funding of innovative projects and to the large-scale market launch of biomass technologies. The focus lies on the funding of projects and/or companies which contribute to an increased deployment of renewable energy. For this purpose, it is intended to open up new financial resources of the private and the institutional sector. Existing alternatives and structures of funding are analysed in this project to examine the investors’ requirements on a project, helping the investment seeking party to present itself in a beneficial way to the potential investors. Due to the fact that the different biomass technologies for energetic recovery play a major role for a sustainable orientation of tomorrow’s energy system and within the research programme “Energy of tomorrow” the analysis and research questions of this project refer specifically to the appropriate industry sector.

The basis for this project is provided by existing research and studies on energy scenarios. According to the data provided by the existing research studies this project aims at deriving an “investment path”, that is, the identification of the investment needs at each stage over time. In the following the financing potential, alternatives and models are discussed with the relevant stakeholders of the investment sector. In a next step, the findings of these discussions will be edited and put into structure in the form of a “Financing–Brochure” targeted especially at projects and companies of the biomass sector.

Furthermore, all necessary steps will be undertaken to set up a new model of private equity financing for the biomass sector. The creation of a biomass-private equity fund, above all, requires a fund concept, which clarifies the fund’s orientation, criteria and investment philosophy. The definition of such a concept is subject to the appropriate project, as well as the formation of a consortium to ensure the realization of the biomass-private equity fund. Once the concept and the investment company are set up, the next step would be to screen possible investment alternatives (projects in the biomass sector) according to the fund’s criteria. Finally, recommendations for suitable investment alternatives in the biomass sector will be given to the investment company.

The last work package deals with the publication of the project’s findings. In the course of an event both, the financing-brochure for biomass-projects and companies and the concept and creation of the new biomass-private equity fund will be presented to the public. Furthermore, selected project operators and companies will have the opportunity to present themselves as interesting investment opportunities.

The results of this project consist of the creation of the financing-brochure and of all required steps for launching the new biomass fund. All findings of this research project will be disseminated by means of the event mentioned above and other information-channels of the applicant (e.g.: website).

Project leader: Dr.ⁱⁿ Katharina Sammer (ÖGUT)

Project partners: KWI Consultants GmbH, GreenTec Invest AG

Österreichische Gesellschaft
für Umwelt und Technik
Hollandstraße 10/46
A-1020 Wien
Tel +43.1.315 63 93
Fax +43.1.315 63 93-22
E-Mail office@oegut.at

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