Funding Activities for Power Capture in the Identify stage

Objective

To identify and document an initial statement of the potential funding sources for the power and capture plant combinations identified and identifying the key funding outcomes that could be obtained.

Major Deliverables

Initial indicative funding plan for the power and capture plant combinations including a statement of the funding sources identified to date and an outline plan to engage and close out funding for the whole of the power and capture plant element costs.

Tasks

Specific tasks include the following:

• Statement of the initial high level strategy to secure funding for the power and capture plant element of the project
• Explore and identify initial thoughts on structuring options for financing the power and capture plant element of the project
• Initial statement drawing on the views of the commercial and technical work-streams to determine what types of performance guarantees are likely to be available for the financial and technical performance of the project. (e.g. PCG’s, manufacturer guarantees etc.)
• High level risk analysis with identification, allocation and mitigation of material (incidence and impact) risks
• Initial project financial model developed to consider funding options and undertake analysis using key debt sizing criteria (project IRR, equity IRR, debt service coverage ration, project life coverage ratio)
• To the extent possible at this stage describe the funding options identified, with the following information:
  • Amount of funding
  • Type of funding (Debt / Loan / Working Capital / Equity / Bonds / )
  • Potential Sources of funding
  • Indicative funding interest rate
  • Draw down profile
  • Repayment profile
  • Repayment conditions / covenants
  • Security requirements
  • Performance obligations
• Identify the funding ‘gap’ that exists and outline how it is intended that the project sponsor will close this gap for the power and capture plant element within the timescales relevant for the project
• Summarise the risks associated with the funding sources and the extent to which any risks sharing is associated with the funding.  If so, which risks are involved and how does this help to provide value for money for the power and capture element of the project
• Identify potential other funding sources that can be approached to close the funding ‘gap’ for the power and capture plant element of the project

Examples

Key Personnel

• Project Manager
• Commercial work-stream lead
• Finance work-stream lead