New financing company accelerates business opportunities for Climeon
Climeon owners have founded the project financing company Baseload Capital to accelerate global, geothermal Climeon Heat Power projects. Gullspång Invest AB, LMK Forward AB and Blue AB are jointly investing 60 MSEK as initial capital in Baseload Capital and Climeon participates through a minority holding not exceeding 20%.
- Geothermal heat power has the potential to become a major global energy source. A key to unlocking the market is project financing, which we believe may contribute to a strong increase in our business within the geothermal sector. We take a minority share in Baseload Capital to maintain Climeon's focus on world-class Heatpower products, says Per Olofsson, Chairman of Climeon.
Baseload Capital will primarily invest in geothermal energy, i.e. renewable baseload, regarding Climeon's existing business as well as their future business.
- We see great business potential in renewable energy from geothermal heat power. We realized early on that project financing could significantly accelerate Climeon’s development and we are extremely pleased to now enable such leverage. Getting an opportunity to actively participate in the development of sustainable energy production is very interesting and in line with our own business idea, to invest in meaningful value creation, says Magnus Brandberg, Partner at Gullspång Invest AB.
About project financing
Project financing models are common in power plant investments globally. With long contracts, approximately 20-30 years, an energy company buys the electricity produced and the revenue is used to secure equity and loans. Baseload Capital will participate in such projects, both with equity and loans, and the next step is to expand the ownership circle and provide the company with more capital.
About Baseload Capital's main owners
Gullspång Invest AB is a family owned investment company with a long-term investment horizon and focus on energy, food, water, health and education.
LMK Forward AB is part of LMK Industri with investments in different areas, including unique energy and safety technologies, hotel and recreation facilities.
Blue is a Stockholm-based investment company that invests in and operates Nordic and international companies applying human ingenuity to deliver tangible solutions which are resourceful, sustainable and serve as a force for good in society.
This press release contains such information that Climeon AB (publ) is required to publish in accordance with the EU Market Abuse Regulation. The information was published for public disclosure on January 10th 2018 at 08:30 CET through the agency of the contact persons set out above.
For additional information, please contact:
Thomas Öström, CEO, Climeon
+46 708 94 96 05
Christoffer Andersson, COO, Climeon
+46 762 00 72 99
About Climeon AB (publ)
Climeon provides a heat power technology that uses energy from two types of sources, waste heat from industries and gensets, and low-temperature geothermal heat from the ground. Heat power is expected to become one of main categories for renewable energy alongside wind and solar. The Company received its first order in 2015 and has since then built up a customer base consisting of Viking Line, Virgin Voyages/Fincantieri, Maersk Line, CP Energy and SSAB, among others. Countries where Climeons offering is availabe includes the USA, Canada, Iceland, Germany, the Nordics, Poland, India and Japan. The product is protected by patents and offers market-leading performance within its areas of application. FNCA Sweden AB is Certified Advisor for Climeon.