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Funding Renewable Projects Paul Pickford– Agrii Consultancy Services. Funding Options. Bank Loan Private Investors Rental Income Collaboration/Joint venture Grants & Support. Presenting the Plan. Preparation Preparation Preparation. Preparation. What are you trying to achieve?
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Funding Renewable Projects Paul Pickford– Agrii Consultancy Services
Funding Options • Bank Loan • Private Investors • Rental Income • Collaboration/Joint venture • Grants & Support
Presenting the Plan • Preparation • Preparation • Preparation
Preparation • What are you trying to achieve? • What does this mean for you and your business? • What does it mean for the potential investor? What is the market? Where is the technology? E.g. is gas to grid a better option than electricity generation?
Resource Requirements Financing may not be an issue for Ground Source Heat Pumps, but will be for Anaerobic Digestion Solar PV is low maintenance when in operation, AD will require constant input
Market Issues • To whom are we selling? • Power company • Local businesses (heat to offices) • District housing scheme • Power Purchase Agreements • How does a farmer sell the electricity to the factory down the road? • If selling electricity, can the grid accept the proposed quantity
Key to Getting a Return • Capital cost per kilowatt installed • Value of output • Efficiency of production • Cost of production
Funding Requirements • Some technologies have very high capital outlay and may benefit from a joint venture • The Bank’s response will be different than lending to farm activities • Due diligence required against the equipment supplier • Detailed business plan will be needed in most cases • Who is the borrower? • Will “New Power Company” be required
Funding Renewable Projects Paul Pickford – Agrii Consultancy Services