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Narec capital generic presentation v12 bilbao ukti event final


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Narec capital generic presentation v12 bilbao ukti event final

  1. 1. The UK’s Renewable Industry Accelerator Advancing Renewable Energy
  2. 2. The Birth of a Global Industrial Economic OpportunitySince privatisation in the 1980’s, our competitive market and system of independentregulation has delivered reliable, affordable electricity. It is crucial for the UK’sinternational competitiveness and economic development that this continues, however,we face a number of unprecedented challenges in the coming decades: Security of supply is threatened: Decarbonisation is essential: Over the next 10 years we will lose around a quarter (20GW) of The UK must start its transformation to a low carbon economy our existing generation capacity as our old, more polluting plants immediately if we are to meet our 15% renewable energy target close. With likely demand set to double over the same period by 2020 and 80% by 2050. To put us on the latter trajectory, our electricity demand will exceed generation capability and we power sector emissions need to be largely decarbonised by will face an increasing likelihood of blackouts. 2030. The Government Renewable Energy Roadmap: Innovate to reduce cost and accelerate deployment: The challenges of decarbonisation and security of supply will A rapid scale up in technology innovation is required to levelise need to be met through a combination of measures. The the cost of producing renewable electricity and accelerate Government have listed *8 technologies that will be developed deployment to meet our obligations. However market failure, to produce 90% of the renewable energy we need for 2020. technology reliability and performance certainty has led to risk aversion amongst investors. Images provided courtesy of Ocean Harvesting Ltd Transition Requires Innovation Needs De-Risking To Gain Investment*Technologies include – onshore wind, offshore wind, marine energy, biomass (electricity & heat), ground& air source heat pumps, renewable transport Advancing Renewable Energy
  3. 3. Narec Group Provides a Seamless Industry Solution Our mission is to reduce financial risk and provide capital in order to accelerate the deployment timeframe of renewable technology and reduce the cost per megawatt hour * Images provided courtesy of Narec Images provided courtesy of Narec Understanding Risk & Knowledge Transfer Technologies Narec provides Narec’s Narec Capital Narec Capital Robust, cost are selected ‘highly processes provides a introduces early effective for testing accelerated evolve & range of stage capital to technologies Lifetime testing’ underpin specialist risk support are rapidly and specialised industry mitigation promising launched into development certification solutions technologies project status standards and projects* Narec Capital is a joint venture between Ashberg Ltd (a fully regulated FSA company) and Narec Advancing Renewable Energy
  4. 4. Narec World Leading FacilitiesTesting, Development & Validation• Narec is recognised in the renewable energy industry as one of the lead centres of excellence worldwide for Initiate Cost Benefit offshore wind technology development. Full• Narec major clients in Europe, Asia Pacific and the UK. project • Strategic enabler for Round 3 • Allows manufacturers to de-risk through• Narec has R&D collaborations in more than 10 100MW - £300M+ demonstration Blyth Offshore • Compliments onshore assets to ensure countries. Demonstrator technology works £18M+ • Income from lease of sites & services develop • Create data set to support insurance• In 2010, Narec was ment phase wrappers appointed Technology Project Fujin • Strategic enabler for Round 3 Advisor to The Crown • Allows manufacturers to de-risk through test 15MW Drive train £45M + Estate in relation to & demonstration test rig • Part of strategic set of test rigs the Offshore Wind Round 3 programme. • Strategic enabler for wave & tidal Project Nautilus deployment• By end of 2012, 3MW Drive train £16M • Allows manufacturers to de-risk through test & demonstration Narec will have the test rig • Part of strategic set of test rigs largest onshore • Strategic enabler for Round 3 • Allows manufacturers to de-risk through test physical asset base in Blade Test II £18.5M & demonstration the world constructed • Part of strategic set of test rigs at a cost of more than Infrastructure £7.5M • Enabler for all of the above projects £130m. Narec 100m Blade Test Facility Narec 3MW Capacity Turbine Drive Train Test Facility Narec 100m Blade Test Facility Advancing Renewable Energy
  5. 5. Narec Capital Business Proposition & Key Future PartnersDe-risking Renewable Projects and Technologies to Increase Capital Flow Specialist Financial Risk Capital Markets Incubation & Consultancy Mitigation Commercialisation • Technical DD • Risk analysis • Capital Raising • Technology • Project • Extended • Debt and Equity Validation Management Warranty Structuring • Incubation Oversight • Broking • M&A • Commercial • Strategy • Specialist • Due Diligence Strategy • Simulation underwriting • Listing • Grant Application • Knowledge • Smart Asset • Refinancing • Management Transfer Management • Operational • Discretionary • Training and • Forensic Audit Restructuring Portfolio Search De-risking Capital Flow Advancing Renewable Energy
  6. 6. Specialist ConsultancyKnowledge & Market InsightNarec Capital provides an end to end suite of consultancy services to mitigate risks and raise capital across the full range of renewable energymarkets and associated supply chains, including: wind; wave; tidal; solar; and bio products. These services are also offered to enabling fields suchas distributed energy; energy efficiency, energy storage and low carbon vehicles utilising collaborations with the national technology assets atNarec and other Centres of Renewable Excellence.Bespoke consultancy services can be applied by Clients at key project milestones between market entry and financial close. Narec Capital valueslong-term Client relationships, where the application of our risk mitigation, capital raising and incubation services lead to shared interest in buildingsustainable value. Ad hoc technical due diligence can be facilitated to support third party fund raising, post event loss adjusting claims and investorassurance. Commercialisation Strategy and Market Project Development Oversight Technical Due Diligence Entry • Provide bespoke due diligence for renewable energy projects and technologies for all key project stakeholders • Commercialisation workshops to develop • Professional project management oversight • Leverage Narec’s 120 first class technical propositions into on all aspects of renewable energy project specialist engineers to market leading commercial propositions development work with insurers, • Market insight and positioning proposals • Advice on key milestones in order to investors and industry • Matchmaking service to create partnerships enhance consortium profile and capital participants and collaborations raising Business and Supply Chain Modelling Resources and Recruitment • Develop cutting edge business models to • Develop bespoke specific client training exploit rapid growth opportunities packages with accredited training partners • A powerful modelling capability using 3D • Provide expert search and selection so that visualisation to solve and communicate skilled resource can be rapidly identified complex logistics, supply chain and and deployed deployment decisions Advancing Renewable Energy
  7. 7. Financial Risk MitigationRisk as a Function of Asset Base Utilisation Test Key Assets & Corporates Projects Clients Financial Risk Mitigation Products Services Data Co Narec Capital Risk ‘Smart’ Wind Warranty Asset Management Solutions Specialist Underwriting MGA Broking (2013) (2011) L Forensic Audit Partnership • Co-broking • Facility Broking • Joint Product Partnership services and Development product development In conjunction with an array of partner insurers Advancing Renewable Energy
  8. 8. Capital MarketsIncubated Companies & Large Scale Financing InitiativesNarec Capital uses its relationship with its parent company Ashberg Ltd (a fully regulated financial services company), to conduct corporatefinance activity. With its centre of operations in London, Narec Capital has access to a range of investors from business angels to banks andpension funds. Our staff have over 130 years of capital markets experience with a strong track record of execution. Ashberg also provides a linkto emerging markets with senior advisors based in both Africa and India. Aquamarine Power Narec Solar Image provided courtesy of Narec Solar • Narec sweat equity in Round 1 • Up to £5m investment financing • Narec spinout • Narec developed power take off • Niche product • Tested at Narec dry dock • Fully commercialised with established client base Kinetic Traction Jack Up Vessels Bio Fuel • £2m investment • Narec developed IP • £350m investment • Large UK Biorefinery • Commercial model in use • Guaranteed contracts • £60m - £350m • Consortium build • Premier offshore operators • Exclusive to Narec Capital Advancing Renewable Energy
  9. 9. Incubation & Commercialisation Exploiting Strategic Early Stage, High Value, Rapid Return Opportunities Narec Capitals ‘engineering led’ Incubator focuses on technologies that advance deployment time frames and reduce the cost per MW/H of renewable technologies: Early Stage Design Commercial Prototype Multiple deals evaluated: Market Demand Disruptive Technology Commercialisation: Robust Business Models Trade Sale ‘Promising’ technologies funded: VC Advanced Renewable Deployment portfolio IPO open market Insurance wrapperImage provided courtesy of Idermar Image provided courtesy of Idermar TRL 1-3 Industry 10 weeks 1-2 years 1 year Assessment & Academia Management TRL 3 4 5 6 7 8 9 +2 Decision years sales Entry Point Narec IP Engineering Validation & Development Accreditation Grant / Public Funding Technical Due Diligence Advancing Renewable Energy
  10. 10. Covering the Full Industry SpectrumTechnology Meets Capital Entrepreneurs / Utilities SMEs Developers OEMs / Integrators Supply Chain Ports Financial Institutions Governments / SWFs National Grid Manufacturers Wealthy Families & Business Angels Advancing Renewable Energy
  11. 11. International ConnectivityAcademic & Industry Alliances Advancing Renewable Energy
  12. 12. Example of Spanish/UK Offshore Marine Technology Development and Commercialisation project• Client: Idermar Meteo based at I.H Cantabria• Proposition : Floating offshore meteorological station Idermar introduced to Narec Capital at the UKTI British Embassy Madrid Offshore Wind Supply Chain event 26th October 2010 Idermar clearly have a market leading technical proposition Idermar needed support with their commercialisation strategy Narec Capital are engaged to undertake the following: 1. Commercialisation workshop 2. Technical due diligence & independent validation and verification 3. Provide a broad insurance solution 4. Capital fund raising for the next stage of Idermars evolvementNarec Capital is providing a Seamless Idermar Solution Advancing Renewable Energy