Presentations from Australia's leading Waste Conference, May 02 ~ 04 2017 held in Coffs Harbour, NSW.

1. OPPORTUNITIES FOR ENERGY FROM
WASTE IN AUSTRALIA
Waste 2017 Conference
Henry Anning
Director and Sector Lead (Bioenergy and Energy from Waste)
May 2017
1

2. CONTENTS
1. Introduction to CEFC
2. Energy from Waste Market Potential
3. Finance Options and Considerations
4. Case Studies
2

3. ABOUT THE CEFC
$10 billion investment
house
Innovative finance,
including debt and equity
Private sector expertise
with a public policy
purpose
Finance for Low Carbon
Electricity, Energy
Efficiency and Transport
WHAT WE OFFER
A unique mix of finance
and clean energy experts
National focus
Proven track record in
clean energy investment
Independently-run
Federal Government
organisation
WHO WE ARE
3

4. INVESTING ACROSS THE ECONOMY
LOW CARBON ELECTRICITY
AMBITIOUS ENERGY
EFFICIENCY
WIND
LARGE SCALE SOLAR
GRID AND STORAGE
SOLUTIONS
WASTE, BIOENERGY
AND AGRICULTURE
COMMUNITY HOUSING
INFRASTRUCTURE
LOCAL GOVT AND
UNIVERSITIES
PROPERTY
ELECTRIFICATION AND
FUEL SWITCHING
VEHICLES
BIOFUELS
MANUFACTURING &
INDUSTRY
AGRICULTURE
4

5. CEFC & AUSTRALIAN RENEWABLE ENERGY MARKETS:
5
$2.5b
of current investment
commitments
$136m
$932m
$1,206m
$1,741m
$2,514m
Feb 17
Portfolio growth
of 108%
since June 2015
June 13 June 14 June 15 June 16
Over 53 direct
investments
9 co-finance and
aggregation programs
that have delivered
over $200m in
finance to more than
1,000 smaller
projects and
businesses across
Australia
A HIGH GROWTH ENVIRONMENT

6. AUSTRALIA LAGS OTHER MARKETS
6
2.4
0.9
OECD
Australia
Bioenergy share of electricity generation
(% of total electricity generation)
FRAMING THE MARKET POTENTIAL

7. OUR $5 BILLION INVESTMENT OPPORTUNITY
• An additional 800MW of new
bioenergy generation capacity will
require $3.5-5b in new investment
• Opportunities in urban waste,
food processing and animal
waste, and plantation forestry
residues
• Potentially avoiding more than 9
million tonnes of CO2-e emissions
each year
Australia’s bioenergy investment opportunity to 2020
($b)
Total: $3.5-5b
Food processing
and animal waste:
$0.7b-1.1b
Plantation forestry
residues:
$0.45b-0.65b
Urban waste:
$2.2b-3.3b
Source: CEFC Bioenergy Market Report
7

8. WASTE LEVIES
BY STATE
$50
Source: State and territory government websites
$76
$135.70
$146.20
$62.03
Nil
Nil Nil
Levies from metropolitan inert commercial
and industrial waste
2016 - 2017
8

9. CEFC FINANCE OPTIONS FOR ENERGY FROM WASTE
DEBT EQUITY
Direct debt financing Aggregation programs Via funds
Direct debt from the CEFC for
amounts greater than $10m
For smaller projects seeking
finance, we work with a number of
aggregation partners:
• NAB Energy Efficiency Bonus
• CBA Energy Efficient Loans
• Westpac Energy Efficiency
Financing Program
Indirectly through the
Australian Bioenergy Fund
9

10. FACTORS THE CEFC CONSIDERS
RISK FACTOR LOW RISK HIGH RISK
Technology Commercially deployed in Aus e.g.
anaerobic digestion, landfill gas
Not commercially deployed in Australia e.g.
pyrolysis, gasification
Feedstock Long contract for supply and no cost e.g.
waste that provides gate-fee revenue
Paying for feedstock and uncontracted
Offtake Guaranteed customer e.g. 10+yr
contracted offtake
Commodity exposure
Equity Substantial equity from quality sponsor Non-investment grade equity sponsor e.g. high
net worth
Construction (EPC) Fixed price EPC with liquidated damages
regime with significant balance sheet
Non-fixed price contract
Operations &
Maintenance (O&M)
Experienced operator with significant
balance sheet
No experience
10

11. KEY ENERGY FROM WASTE SECTOR CHALLENGES
ISSUE CHALLENGE
Complexity of projects Complex compared to other energy projects such as solar or
wind
Capital availability Immature project market in Australia
Past Australian project issues
Deal complexity – multiple revenue streams
Development experience and
capability
Generally smaller, inexperienced project developers
EPC/O&M price Investors typically require fixed price EPC
Limited projects in Australia mean limited EPC/O&M price
tension
Approvals Immature project approval regimes, few approved Energy from
Waste projects, limited community understanding
Levy inconsistency Interstate waste movement is a cap on project gate fees
Large councils in Qld are conducive to bankable, ‘simple’
waste supply agreements, but no levy
SOLUTION
1. Simplifying projects as
much as possible
2. Attracting experienced
international investors and
EPC
3. First projects successful
4. Critical mass of projects
Focus on states with supportive
levy and approval regimes
Levy consistency over long term
11

16. CLEAN ENERGY FINANCE CORPORATION
t. 1300 002 332
i. +61 2 8039 0800
e. info@cleanenergyfinancecorp.com.au
cleanenergyfinancecorp.com.au
CEFC CONTACTS
e: Henry.Anning@cefc.com.au
m. 0415 367 318
Henry Anning
Director – Corporate & Project Finance
e: Mac.Irvine@cefc.com.au
m: 0499 950 485
Mac Irvine
Senior Associate – Corporate & Project Finance

17. t. 1300 002 332
i. +61 2 8039 0800
e. info@cleanenergyfinancecorp.com.au
cleanenergyfinancecorp.com.au
CLEAN ENERGY FINANCE CORPORATION

18. The
Circular Economy
in the
Asia Pacific Region