BE ENERGY POSITIVE WITH KROKA 2

Transcription

1 BE ENERGY POSITIVE WITH KROKA 2

2 ECOHZ GO² is Renewable energy documented with Guarantees of Origin. A financial contribution to the top financing of the power project so that the project can be built. Project information and status up-dates during planning and construction phase. Possibility to arrange a Power Purchasing Agreement (PPA) with the new power plant (subject to agreement with the project owner). The right to purchase Guarantees of Origin (GO) from the new power plant. 2

3 ECOHZ GO² There is little doubt that the world will need more renewable energy in the future. This challenge cannot be met without active involvement of the companies that consume the electricity. ECOHZ has launched a product called ECOHZ GO². It enables customers to track their renewable electricity consumption and at the same time contribute towards building new, renewable power plants. Kroka 2, the power plant presented in this prospectus, is among the first of such projects to be realized through GO². As an ECOHZ customer you can be assured, with documented proof, that your power consumption is renewable - any electricity consumed will not cause carbon emissions. By simultaneously consuming renewable energy and helping finance the deployment of renewable power, your company is able to show the market the importance you place on sustainability and a reliable, low-carbon energy supply. ECOHZ GO² creates more renewable power production and is recognised by the GHG Protocol and endorsed by CDP. THE RENEWABLE POWER PARTNERSHIP, co-created by CDP and ECOHZ, connects companies with innovative renewable energy solutions. ECOHZ GO² is the first solution presented through this initiative. CDP is an international NGO that works with investors, companies, and governments to drive environmental disclosure and action to deliver sustainable economies. 3

4 Characteristics renewable products Historically, the market offered limited choice of zero carbon electricity products for corporations. Either, the accessible and inexpensive «entry level» Guarantees of Origin (GO) documenting the origin of the power, or highly complex and long term commitments through Power Purchasing Agreements (PPA) or Direct Investment (DI) in production assets. Now, with GO² companies have an option to purchase a high impact renewable power product that is simple to implement and without the problematic long term financial commitments of PPA and DI. Focus on high impact-low complexity PPA/DIRECT INVESTMENT IMPACT GO 2 CREATE RELEVANCE FOR MORE CORPORATIONS GO/REC/I-REC COMPLEXITY Characteristics of renewable power options Guarantees Direct of Origin GO² PPA Investments With GO 2 ECOHZ provides a low risk solution available to corporations at low cost. Engaging in GO 2 for as little as one year can be enough to assure that a new power plant is being built. An accessible solution, a compelling result oriented story without the inherent risks associated with the long term commitment alternatives. Low cost Low risk Ease of implementation Flexibility Short term commitment Zero CO 2 emissions* Impact on renewable generation Displace fossile based generation Compelling story *in accordance with GHG Protocol 4

5 ECOHZ GO² customer benefits DOCUMENT EMISSIONS REDUCTION - With each MWh of ECOHZ GO² purchased and consumed, your company can claim zero CO 2 emissions. - ECOHZ GO² is built on the Guarantee of Origin (GO) system. It is the only way to document renewable energy from production to consumption in Europe. - ECOHZ GO² is fully compliant with the GHG Protocol guidelines. CONTRIBUTE TO DEVELOPING NEW, RENEWABLE ENERGY - Each GO² bundles 1 MWh of documented, renewable energy with a financial contribution that enables a new power plant to be built. Thus, GO² enables power plant projects previously blocked due to the lack of financing to be built. - A real contribution to the creation of new, renewable energy was previously only possible through more complex options like investment in on-site generation and Power Purchasing Agreements (PPA). - The renewable power created from the new power plant s lifetime is greater than the volume of ECOHZ GO² purchased to build the plant. SHOW THOUGHT LEADERSHIP - ECOHZ GO² offers an unprecedented energy positive opportunity to demonstrate climate stewardship to your stakeholders. - Recognised as best practise by the GHG Protocol and the CDP standard. - Establish a close connection with the funded power project. - Project-specific information, updates and communications material for your marketing and sustainability reporting. CUSTOMIZE YOUR SOLUTION - Once your new power plant project is operational, you will have a right to purchase Guarantees of Origin for the long-term. - It is possible to arrange Power Purchasing Agreement (PPA) contracts with certain power plant projects financed by ECOHZ GO². - ECOHZ is searching for power projects that meet your criteria. - Full service; ECOHZ handles all administrative tasks and registration / cancellation formalities. 5

6 ENERGY POSITIVE Kroka 2 will produce 3 times more power than your annual consumption. Produce as much as you use and be Energy Positive The new plant will, over its lifetime, produce more renewable electricity than your annual consumption. In short, you will produce more new renewable electricity than you consume and be Energy Positive. KROKA 2 ECOHZ GO 2 agreement Zero carbon through GO 100,000 MWh 3x original consumption Procurement cost through ECOHZ GO 2 100,000 MWh x EUR 4.00 per MWh = EUR 400,000 COMPANY Power consumption in a year (example) 100,000 MWh Money committed to funding of projects 80% (EUR 3.20 / 4.00) = EUR 320,000 Power produced by new plant 8,500 MWh per year Power produced over 40 year life cycle More than 300,000 MWh POWER PLANT 3x original consumption 6

7 The power plant will ensure a continued running of the farm and strengthen the local businesses as well contributing to more renewable energy. Oddbjørn Kroka, farmer & landowner Kroka 2 a small hydro power plant The Norwegian coast is well suited to transform water resources into clean, renewable electricity. An enthusiastic farmer in Kvinnherad, in the mountainous Norwegian fjord land, is working to build a small hydro power plant on his farm. The project needs more financing to be completed. Additional financing Norway has a history of transforming power from waterfalls and running rivers into electric power. Historically, these projects obtained full financing from the bank due to the lease value of the waterfall right. The Waterfall right is the right to exploit water resources and the lease value reduces the need for equity. Today, the water fall right still gives additional equity, but the banks have reduced the leverage. In combination with low power prices, this has led to a financing gap for a number of small, high-quality power projects in Norway. The renewable energy projects therefore remain blocked until additional funds are committed. The renewable energy power plant The plan is to build a small hydro power plant on the Kroka river; Kroka 2. Kroka 2 will be built on the site of an old hydro power plant that was in operation until Another power plant, Kroka 1, was built a little further downstream in The Kroka 2 project currently lacks top financing to complete the construction. Kroka 2 will have one Pelton turbine. The annual production is estimated at 8.3 GWh. The intention is to build a small intake for Kroka 2 and use a 480 meter fall in the Kroka river. The intake for the power plant is above the treeline, and a gorge conceals it, so the intake will not be an eyesore on the landscape. For instance, natural stone will line the intake area. The intake volume will be around 250 m 3 and it takes about 16 minutes to fill the intake dam, so it s a run-of-river and not a storage plant. The Norwegian Water Resources and Energy Directorate (NVE) has granted the power plant all the required permits. Environment To minimise impact on the landscape during the building phase, the plan is to use tunnels and roadless construction with helicopter transport. The power plant will therefore not conflict with cultural heritage interests, the landscape or recreation in the area. The impact of the development on biodiversity in the Kroka river and redlisted species of moss was extensively addressed in a report. The approved project does not have any negative biodiversity impacts. The current plan is to build Kroka 2 in a cavern just above the intake for Kroka 1, and to release the water into the Kroka 1 intake. Thus the same water volumes are used twice. This will maintain the water supply in the area where the moss grows and ensure that the new power plant does not disturb the natural habitat of the moss. The power plant must at all times send a minimum water flow through the original watercourse. The Kroka 2 project will have minimum effect on the surrounding area as the river is well hidden and barely visible on the landscape. The Kroka project is on the edge of a mountain region linked to Folgefonna National Park. At the heart of the park lies Folgefonna, the third largest glacier in Norway, which attracts tourists from all over the world. The national park includes majestic valleys extending from glacier tongues and dramatic icefalls all the way down to the fjord. 7

8 ECOHZ GO² PROJECTS ECOHZ is building a portfolio of renewable power projects across Europe that are currently lacking top financing. One of these renewable power projects is Kroka 2 in Norway. The Kroka river runs into the Maurangerfjord. At the river s mouth sits Kroka farm, where the riverbanks have been farmed since the Vikings roamed the fjords more than 1,000 years ago. We are delighted to see a link created between the consumption of renewable electricity and the introduction of additional renewable capacity. Nigel Topping Executive Director, CDP 8

9 Kroka 2 a small hydro power plant TECHNICAL DATA Energy source Hydro Origin Norway Planned installed capacity 3.0 MW Annual estimated production 8.3 GWh (8,300 MWh) Lifetime expectancy 40 years Type of power plant Run-of-river Pump storage No Waterfall (gross) 480 m Project owner and producer Oddbjørn Kroka No of turbines 1 Turbine type Pelton Catchment area 2.7 km² Minimum water flow in original river outside the power plant according to license 11 l/s Mean discharge 267 l/s Required minimum water flow rate 11 l/s Intake 615 m above sea level Outlet 135 m above sea level Length of relevant stretch of river Approx. 1,200 m Available grid connection Q Length of buried pipeline 1,200 m PROJECT COSTS Total project costs EUR: 3,4 million Financing plan 85 % bank loan 5.6 % equity 9.4 % top financing EUR per KWh: 0,35 bank loan 0.02 equity 0.04 top financing = 0.41 EUR per KWh Top financing requirement 9.4 %, i.e. EUR 320,000 Production support Will receive el certificates Reference to license The project has received processing and status all the necessary permits Environmental plan and measures Available (in Norwegian) 9

10 Progress The Kroka 2 power plant project is ready to be launched as soon as the financing is in place. The project will need approximately 6 months for the final detailed engineering, and 18 months for construction. Available grid connection will be available first quarter of 2017 and then the power plant can be ready to supply power to the grid. As an ECOHZ GO 2 customer associated with the project, you will be updated on the construction progress for the plant. You will be able to use the documentation in your company s marketing, and show that your purchase of GO 2 was instrumental in enabling the construction of a renewable power plant. Once the power plant has been completed, you can purchase Guarantees of Origin from the new plant, in accordance with your power requirements. THE NEW KROKA 2 POWER PLANT WILL HAVE THE FOLLOWING QUALITIES: EU ENVIRONMENTAL STANDARD The power plant will be built according to the latest and most stringent EU environmental requirements. It will fulfil the requirements of ecosystem-based administration of water and biodiversity, as defined in the EU Directives on water, habitat and birds. FOSSIL-FREE ORIGIN The producer has no direct ownership interests in production units that produce oil, gas or coal. No fossil energy generators have ownership interests in the power plant. RUN-OF-RIVER The electricity is generated by a power plant that uses the natural flow of the river, without a reservoir. NUCLEAR-FREE ORIGIN The producer has no direct ownership interests in nuclear power plants. No nuclear power generators have ownership interests in the power plant. 3 NORDIC ORIGIN Origin: Norway SMALL-SCALE ORIGIN The Kroka 2 project is a small-scale power plant (3 MW). 10

11 3 rd party verification ECOHZ Renewable Energy Foundation is a separate legal entity with the sole objective of managing and optimizing a portfolio of loans to renewable power projects. The foundation will ensure total transparency and irrefutable verification. When the Kroka 2 project is completed, the top financing-loan will gradually be repaid to ECOHZ Renewable Energy Foundation, which will relend that capital to new power plant projects. Thus creating a multiplier effect on the Foundation s lending base that will accelerate the construction of renewable energy capacity in Europe. In order to verify the correctness of selected key information in the prospectus and the cash flow connected with the financing of the Kroka 2 project, an independent third party will confirm information accuracy. ECOHZ Renewable Energy Foundation and PwC have signed a verification agreement. PwC will verify the following information: - The license to operate the Kroka 2 project is granted. - Estimated annual GWh production according to granted permission. - Estimated construction period. - That the project owner has been permitted a conditional bank loan that is granted provided that sufficient equity and/or top financing is available. PwC will also verify the money flow through the value chain from the GO 2 customer to the Kroka 2 project. Verified information about the construction progress will be provided to the GO 2 customers for their discretional communication and reporting use. When Kroka 2 starts feeding electricity into the grid, Statnett, the publicly owned system operator, will issue Guarantees of Origin through the NECS register for that production. 11

12 The ECOHZ vision Changing energy behaviour ECOHZ offers renewable energy solutions to electricity providers, businesses and organisations across Europe, North America and Asia providing renewable electricity, from a wide range of sources, regions and qualities. The renewable electricity is documented by Guarantees of Origin (GO) in Europe, RECs and Green-e in the US, and newly established I-RECs in selected Asian markets. ECOHZ also provides a new and innovative solution - GO² - combining a renewable energy purchase with the financing and building of new renewable power generation. Companies that purchase documented renewable energy reduce their carbon footprint and improve their sustainability ratings. ECOHZ is among the leading independent suppliers in Europe, and is located in Norway and Switzerland. ECOHZ endeavours to play an active role in this transition through its vision of changing energy behaviour. LEIDAR DNV GL has verified the ECOHZ value chain. We are also ISO certified. Partnership with: linkedin.com/company/ecohz ECOHZ AS Rådhusgata 23 NO-0158 Oslo, Norway Phone: European Branch Office Rue de la Colombière Nyon, Switzerland Phone : mail: go2@ecohz.com