The greatest problem that is holding back investment into projects and innovative technologies within the renewable/energy sectors is access in obtaining securities for project capital.
In a business model, it is critical to assess the installation and process risk. Process availability is identified by known maintenance regimes and plant closures and this availability is used to calculate the projects minimum level of revenues that can repay the debt and cover operational expenses – Breakeven.
If an unexpected catastrophic event happens, then normal business insurances can step in to help mitigate the loss, but what if the unexpected is a non-catastrophic availability event where the process simply underperforms but causes the project difficulties, creating a loss and the projects ability to repay the debt and cover the operational cost.
The risk of these events can be evaluated where the technology has a proven track record, enforced by other risk mitigation procedures but what if the technology is unproven with limited or no track record and how can these technologies complete and bring their benefits to market?
The heart of the Platform is supported by an international finance counterparty, to whom the risk of the plant underperforming is transferred.
Pre-Commercial Operation Date – start-up commissioning risk cover in form of repair cost and/or debt repayment.
Post-Commercial Operation Date – protect long-term investment with guarantee of project output and quality of end-product; operational and excessive maintenance risks.
Subject to acceptance of your project and the resulting due diligence carried out by Allied Project Services, you will be introduced to a broker to provide advice on the insurance product.
Other guarantees are available within the DPI® Platform for;
Solar Module Performance
PV Project/System Performance
Fuel Cell System Performance
Energy Storage Performance
Different Terms and conditions would apply to each of these sectors and subject to acceptance into the Desktop Review Service.
Transfer of Risk to a strong Financial Counterparty
Accelerateyour technology into the market
Any investment opportunity no matter how unique competes for attention with the multiplicity of other investment opportunities seeking capital at the time.
Having the added benefit of our DPI® Platform and the financial guarantees offered by our third-party provides a solution and enables the project developer to negotiate better terms with the Equity Investor and Debt Provider.
Start-up / Repair Guarantee
All investors require the execution phase of a project to be undertaken by an experienced and robust contractor who are expected to provide financial guarantees to cover the total project risk. In today's environment, this is rarely provided by those contractors and even if this were possible it would be very expensive and prohibitive to the economics of the project.
The Start-up/Repair guarantee is designed to reduce excessive EPC costs and enhance their performance guarantee terms on startup when delivering a process using various technologies and battery limits.
This Guarantee is particularly beneficial where the contractor is restricted due to their balance sheet or their contract is restricted to their contract price, rather than the project value.
Once the start-up phase is complete and the EPC has signed off, the Start-up/Repair contract then extends for 10 years after start-up to Protect the projects debt repayment against unexpected downtime.
This total guarantee enhances the project to both Equity Investors and Debt providers.
Protect the Debt Service after Start-up
The Protect Guarantee flows seamlessly from providing additional guarantees during Start-up to providing a 10-year guarantee that ensures that your debt repayment is protected against unexpected downtime that could result in the project not being able to meet the debt providers requirement.
This guarantee is non-cancellable by the financial counterparty during the 10 year period.
Because of this it enhances the equity investors' and debt providers interest in the project and allows the project developer to negotiate a reduced equity requirement and a more competitive Debt rate.
Risk Transfer to a Strong Counterparty
Guaranteeing the unexpected.
The challenge for a project developer is obtaining financial guarantees when the technology they want to deploy has limited or no track record and /or they are unable to provide any financial guarantees.
This can add extra cost to the EPC/M contractor who is expected to cover the financial risk.
Allied Project Services have been working on this issue for many years and can now provide their clients' with a competitive solution provided by their DPI® Platform.
This is done by the way of a risk mitigation transfer to a high worth finance counterparty that provides a level of financial support to the Start-up of the process and later, Protects the projects' senior debt requirement.
This guarantee adds a third party to the funding table and thereby offers the project developer the ability to negotiate with the other two parties- the equity investor and debt provider.
DPI® Pre-Accredition Service
Accelerate your technology into the Market
Our DPI Platform pre-accreditation service undertakes due diligence on your process, keeping in mind the requirements of funders. The aim is to achieve an understanding of your process and perceived risk through lack of track record and offer financial guarantees to your project developer and accelerate your technology to market.
The benefits of the pre-accreditation Service provides;
Reduced the maturity timeline,
Reduces the need to borrow expensive money to keep the plant running under demonstration status and attracting lower-cost equity investment into the company if required and
Provides an accelerated programme for commercial deployment and export.
By reducing the usual expectations on technology maturity required by funders, which can be up to two years of continuous operations, the requirement by the manufacturer to borrow expensive money such as Seed or Venture Capital is substantially reduced.
Committed to Innovation and Environmental Change with Clean Energy
Environmental change is driven by innovation in technology. We are committed to always pushing, provoking, learning and supporting the innovation of clean energy technologies that provides a solution to the environment, its communities and provides an acceptable rate of return to investors.
Our DPI® Platform supports project developers and technology manufacturers who are seeking to deploy such technologies that will make a difference to our environment, by reducing air emissions and reliance on fossil fuels.
By providing a financial guarantee to technologies with a limited track record, we are supporting these technologies to grow and provide clean and renewable energy solutions and reduce carbon emissions. We’re Committed to Innovation, Progress and our Environment
Allieds' Desktop Review Service
Allied is a trusted due diligence partner engaged by Project Developers, Funders and Insurance Brokers to provide services such as Project Finance Guarantees and Debt and Equity Finance initiated through our Desk Top review- designed to support project developers in reaching financial close to their project, with desirable lending terms and technology manufactures in reaching commercial deployment and market advantage.
At Allied we receive numerous enquiries per week from project developers seeking finance to fund their projects but, only a few are selected by Allied to enter their #DesktopReviewPlatform. The selection process ensures that the client has undertaken sufficient project development work and therefore satisfies, the initial required criteria of Allieds funders and insurance brokers should project guarantees be required.
Under our Desktop Review Service, and at no cost to our selected clients, Allied carry out detailed due diligence to evidence supporting documentation, permits and the strength of the project’s counterparties. Our final report is presented in a format critical to creating a first impression that puts our client’s investment requirement on a fast track to the funders and underwriters, further supported by their client's documentation filed and secured in our data room
One of the unique features of the Desktop Review Platform is that from an early stage, Allied can talk directly to their selected funders and underwriters to obtain their interest and proceed through the review focusing on any issues which are potential areas of concern, providing our client with clear information and allowing them to make informed choices on moving forward.
This process not only identifies the cost related to proceeding to funding but, provides assurance to our client that any cost that is incurred is directly aligned with the progress of the funding.
The DPI®Platform is supported by an international third party to whom the risk of your plant not performing at design level during construction and underperforming for the first 10 years of commercial deployment is transferred. Subject to acceptance of your project and the resulting due diligence carried out by Allied Project Services, you will be introduced to a broker to provide advice on the insurance product.
Q2: What does the Third Party provide?
1. A 10-year, non-cancellable cover
2. A limit up to USD 100m cover
3. Competitive terms
Q3. If I accepted, what are the principal benefits I can expect?
1. The ability to guarantee pre-agreed expected revenue to support initial financing, refinancing and the financing of retrofits.
2. Access to a broader lender base, introduced through Allied
3. An enhanced project credit rating.
4. Lower debt cost and/or an increased debt to equity ratio
5. It provides lenders with the security of guaranteeing their Debt Service Coverage Ratio (DSCR).
Q4. Who should be interested in the DPI® Platform?
1. Any developer with a project in the renewable energy, energy and power, power cells, biofuels, synthetic fuel, plastic to oils, and simular sectors
The Desktop Review and subsequent due diligence for the DPI® Platform are by invitation only and undertaken by Allied Project Services Ltd (Allied). If selected by Allied, Allied will be required to be exclusively appointed.MORE
Q7: Why is the due-diligence process for the DPI® Platform exclusive to Allied?
Allieds' team were involved in the creation of their Desktop Review Service and the DPI ® Platform. During the creation of these services the due diligenece was agreed, and accepted by the selected funders they use and other parties associated with the Platform.
Q8: I have already engaged consultants to carry out technology and project feasibility reports, can I use these?
YES! But, Allied will need to validate these and issue their own report to gain access to the funders. Their due diligence will take into consideration any validated information and evidence used in your own consultants' reports that would expedite completion of the final report.
Q9: How much does the due-diligence cost and how long does it take?
Q10: Will your due-diligence reduce the need for any other due-diligence requirements and insurances?
Due diligence is required by all the parties involved in a project, including the contractors for project delivery, operations and management contractor, equity and debt providers, according to their individual requirements. However, we strive to bring added value to our process and work with all parties to integrate, as far as possible, the due-diligence carried out.
We are always pleased to answer any other questions which are not shown here. Contact us for more information
This web site and the registered trademark DPI® is owned by Allied Project Services Ltd. All due-diligence carried out for DPI® Platform is carried out by Allied Project Services Ltd at no cost to their client. Allied retains the right to use the final report to arrange funding for the client. As the result of a funder being identified further detailed due diligence might be required and will be carried out and managed by Allied Project Services Ltd and other third parties on behalf of its client at an agreed hourly rate. The time period for further due diligence outside of the Desktop Review will be in accordance with any further requirements of the funder identified or the client. At this point also, and to enable Allied to continue discussions about the project directly with the funder, Allied will be required to be mandated by the client. The information contained herein we believe to be accurate but we make no representation or warranty as to its accuracy and should not be read as, an offer or recommendation or a solicitation of an offer. The Site also has "Fair Use" which includes copyrighted materials that we may not have the license to use. Allied do not offer insurance or financial advice and user information should be seen as a guide and not be seen as a recommendation to use any particular insurance or investment strategy. Allied shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein.