It is estimated that the oil reserves we have today are enough to last us less than 50 years at current levels of consumption. Natural gas fares slightly better, and is expected to last us another 200 years. However the prevailing view is that climate change is a significant concern for the people of the world, with substantial evidence rising average global temperatures and increasingly erratic weather. As a result the drive to reduce emissions of carbon dioxide and other greenhouse gases is pushing us away from fossil fuels towards renewable energy alternatives.
The Need For Renewable Energy Finance
The energy needs of our world, with its growing population, are constantly increasing. This relentless growth in energy demand leaves us with two options – either reduce our energy consumption, or work continuously to find alternative sources of energy. (A combination of the two is also helpful, and potentially the best course of action.) If we are to avoid consuming additional fossil fuels, this pushes us towards the development of renewable energy sources.
Renewable Energy Project Finance
The search for new sources of energy needs to proceed on several fronts. One way is to find out new supplies of conventional energy sources (like oil or natural gas). The second is to focus on increasing supply from sources of sustainable, low-carbon energy. The feedstock for renewable energy, whether sunlight, wind, wave power or geothermal, tends to be free. However, all of these sources of renewable energy require funds on a large scale to cover the significant capital investment. That is why renewable energy financing is the need of the hour, so that the development of sources of renewable energy can continue and create additional capacity to satisfy growing energy demand. The world needs and will continue to need more project sponsors who can either provide necessary finance for renewable energy themselves or can bring aboard capable specialized financers.
Helping Find Renewable Energy Funding Sources
Kapok Capital is a boutique investment bank which specializes in investments in the energy sector. Kapok Capital’s expertise is in arranging for investment for energy projects from among their network of contacts. Past successes for Kapok Capital include $50 million equity investment in Energean Israel, and $300 million and $650 million revolving credit facilities arranged for Kosmos Energy and Tullow Oil respectively, just to name a few these examples of funding for energy projects across the world. These deals are testimony to Kapok Capital’s broad relationships with energy investors. Kapok Capital can complete energy project finance by connecting projects with a number of renewable energy funding sources.
Corporate Financing Advisory
Apart from its work in renewable energy project finance, Kapok has built up a strong portfolio in providing advice for renewable energy mergers and acquisitions (M&A), including for Reservoir Capital Corporation in its 2018 acquisition of 60% of Kainji Power Holding Limited. Kapok Capital’s M&A services include the entire gamut of consultation, beginning from due diligence of a target company to execution of the sale and purchase agreement. Led by a dynamic leader in Paul Dufays, Kapok has quickly grown to become a respected name in the arena of renewable energy finance as well as renewable energy M&A.