The Company: Clean Invest Africa plc
Clean Invest Africa [NEX:CIA] is an Investment Vehicle that will focus on delivering an attractive return through acquiring stakes in clean energy companies, remediation/restoration technologies, waste to energy technologies and other clean energy related projects throughout Africa.
The Opportunity: Renewable Energy in Africa
Several factors are acting to increase the demand for change in energy policy of the Governments of Africa away from the more traditional fossil fuels to clean renewable energy sources. Increases in the price of fossil fuels have led to a significant improvement in the cost competitiveness of renewable energy versus traditional, non-renewable, sources. Renewable energy is also receiving support due to its perceived environmental benefits, especially the contribution which renewable energy resources could make in efforts to reduce emissions of greenhouse gases. Furthermore, in addition to the traditional economic value of energy products and related by-products such as thermal energy and steam, there are additional revenue sources potentially applicable to renewable energy products, including tax and other financial incentives and carbon credits. The Company believes that all these factors are contributing to an increased demand for clean and renewable energy, creating a positive environment for investing in clean, and renewable energy projects.
To pave the way for this new era of renewable/clean energy much work remains to be done to remediate the damage/impact caused by previous energy sources and production and leave the environment in a cleaner state. New technologies are being developed to assist with this clean up and can even generate energy in its own right through the waste to energy process.
There are inherent challenges for institutional investors in accessing small and mid-size technically complex projects in the renewable energy sector. Clean Invest Africa believe that institutional investors often lack the appropriate in-house resources to access and evaluate such small technically-complex assets effectively and efficiently and may find the amount of time and analysis required to be unpalatable. Clean Invest Africa, through its energy sector knowledge and expertise, is well positioned to source, assess and structure transactions in the sector at an early stage. The Directors believe that the Clean Invest Africa’s capabilities and access, through its Directors’ energy and environmental market knowledge, will allow the efficient screening of smaller and more complex projects, thereby broadening the scope of opportunities and giving institutional and other investors a means to access a range of project level opportunities within the renewable energy sector.
The Company is currently looking at several potential investment opportunities in Africa. For example, there is an interesting solar energy project for schools, designed around the day-light hours of the school day making it an ideal target area for solar energy. A remediation project leading to a waste to energy solution which yields a dual outcome of a cleaner environment and a new energy source is also an area of interest. The above projects are attractive to the company as they fulfil the company’s investment criteria but also offer significant opportunities to replicate and scale up through-out Africa potentially creating significant value for the shareholders and energy solutions for their respective communities.
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