News - MARK DENNES

Energy Finance and M&A

5/25/2018

Renewable Energy
In the absence of PPAs, solar developers are leaning on munis and coops to place solar on landfills. Develop-sell model.

Energy Storage
Lithium-ion battery prices have fallen 80% since 2010. US installed energy storage capacity 2018 2.3 GW, 2030 73.5 GW

Oil and Gas
France will be able to cover 1/3rdof its gas requirements with biomethane by 2030.

Latest News
Siemens Gamesa hot rocks heated by conventional sources to hold heat up to 24 hours. LCOE 12c/kWh. In-earth concrete bed, round shape. Beats battery storage limit of 4 hours. EnPot Shell Heat Exchanger
Credit metrics for gas-fired power:
(1) Revenue Risk - Maintain atleast 1.30x DSCR before downgrade. Ideally min 1.50x or higher.
(2) Regulatory Risk - Potential downgrade for CA regulation on emissions.

Energy Finance and M&A

5/18/2018

Solar and Wind
Wind capital costs falling. Wind target turbine price less than $1/W.
CA requires all new construction have solar PV beginning 2020. Expect reduce residential power use by 50%.

Thermal Power
Utility IRPexpects power from gas-fired peakers, limited 3rd party solar, no storage.

Oil and Gas
Biofuels energy hedge of D3 and D5 RINsis not perfect. There is a correlation between hedge contract and RINs exposure that might make hedge attractive. ICE will launch LCFS futures and options contracts. Argus monitors RIN prices. IHS Markithas a pricing, news and analysis service. Expect Carlyle and Sunoco to prevailand released of their RINs obligation.

Energy Finance and M&A

5/11/2018

Solar and Wind
Solar business model led by PPA, then secure permits, approvals. An entirely flipped, customer-led business.
PURPA law measure to waive the mandatory power purchase obligations.

Latest News
$3.5 BN raised in 203 deals. Muni Prepay gas sales option. 30-year contract renegotiated every 6-7 years. C&I Cooling-as-a-Service. Equity from Shell. Clients include Amazon and Walmart. No upfront capital or out-of-pocket expenses. Reducing peak energy demand by up to 40%. 50,000 TPY wood to lignen and sugars. Future plan to incorporate in at least 11 wood pellet production projects.

Energy Finance and M&A

5/4/2018

Solar and Wind
Wind power capacity additions average 65 GW p.a.from 2018 to 2027, 4% CAGR.

Oil & Gas
Long term gas price forecast $2.50/Mcf.
NYC acquires renewable fuels from Spraguefor 6-month trial. Produced by Renewable Energy Group.

Latest News
1Q18 M&A nearly 5,000 dealsrepresenting about $620 BN. 125% increase over 2017. 463 divestitures representing $149 BN. Renewable energy deals accounted for 36% of the deal volume. 223 transactions representing $7.5 BN.VC funding at record levels in 2017. Venture-backed companies raised 2.5x what their venture firm counterparts received in commitments in 2017. $550 MM Nectar Farms 40 hectares or 100 acre indoor farmlargest in southern hemisphere. Wood pellet price $169/ton.