Dubai, UAE, 16 June 2015
Greenstone Equity Partners, one of the largest independent fund placement firms in the Middle East, announced its collaboration with Deutsche ErdWärme, a Karlsruhe, Germany-based geothermal development company to raise up to Euro 150 million for the development of a portfolio of geothermal licenses in Germany. The geothermal energy market in Germany is experiencing rapid growth with attractive 20 year tariffs backed by the German Government. This provides investors with long-term high yield investment opportunities.
The new partnership aims to raise up to Euro 150 million in capital to partly-finance the construction of four geothermal projects which will generate a total of approximately 25 megawatts. GCC investors will be invited to invest in a preferred equity structure, with a 10 per cent return, at low risk, as the tariff is backed by the German government. In addition, there is no pipeline risk as the project pipeline is secured and it exceeds the target capital raise.
"Clean energy initiatives are gaining strong popularity, as the world is seeking to enhance global energy security, promote enduring economic growth and tackle environmental challenges," said Omar Al-Gharabally, President of Greenstone Equity Partners. "Several countries have already achieved tremendous clean energy deployment, while others have announced targets for shifting their energy systems onto a cleaner, more sustainable path. With this acceleration in interest from both public and private sectors in clean energy, we see renewables as strong assets for investors to invest in."
"Germany was one of the earliest countries in realizing the world's needs to achieve a clean energy revolution, thus has been a leader in global energy transition efforts. Deployment of renewable energy has been a top priority for the German government that aims to achieve 80 per cent of the German power generation to come from renewable energy by 2050, up from the current 25 per cent," said Dr. Herbert Pohl, Co-Founder and Managing Director of Deutsche ErdWärme. "Geothermal energy, which is heat from the earth converted into power, is an exceptionally clean and efficient alternative energy source. It is used both to generate electricity and as a natural means of heating homes and buildings. As a clean, base-load, 24/7 source of energy, we believe that geothermal energy has a tremendous potential in Germany."
Deutsche ErdWärme (DEW) is part of the Jones Pohl Group, a privately-held, Dubai-based firm that invests early-stage capital in fragmented yet growing clean energy markets primarily in Europe, the Middle East and Africa. DEW plans to initially develop a portfolio of several geothermal projects in Germany, and has already acquired data and studies for those projects.
Geothermal energy is an emerging renewable energy market segment in Germany exhibiting strong growth potential. There are currently 31 operational geothermal projects in the country. An additional 43 projects are in development, which will at least double the installed capacity over the next five years. To encourage private investments into this segment, the German government gives attractive incentives to investors and guarantees electricity tariffs without the need to negotiate a power purchase agreement. The effective feed-in tariff for geothermal energy is currently € 0.252/KWh and guaranteed for 20 years once the plant is operational.Deutsche ErdWärme GmbH & Co KG ("DEW")Deutsche ErdWärme GmbH & Co KG (DEW) is a geothermal development and investment company. DEW has been established to develop and invest in a portfolio of geothermal projects in Germany and is successfully launched with top-class leadership team, strategic partnerships, a significant project portfolio and investment opportunities.
DEW was established by Jones Pohl Group ("JPG"), a company created to invest early-stage capital in fragmented clean energy markets. JPG was founded by two prominent industry veterans: Dr Herbert Pohl and Hon. Walter C. Jones, who are also Co-owners of RG/Safa Thermal Energy Solutions, a geothermal developer focused on opportunities in the Middle East.Greenstone Equity Partners:
Greenstone Equity Partners is a MENA-focused boutique investment and advisory firm specializing in multi-sector, advisory, fund placement, investment, consulting and deal structuring transactions. Based in Dubai, Greenstone's primary areas of focus are:
· Fund Placement
Greenstone provides its clients with advisory services and access to MENA-based sovereign wealth funds, institutional investors and family offices for primary and secondary placements. Greenstone places a strong emphasis on the geographical capital diversification needs of its MENA-based clients. Greenstone is generally engaged as a sole and exclusive MENA fund placement firm by global top quartile investment banks, asset managers and fund managers from both developed and developing markets.
For more information, visit www.gsequity.com
For further information, please contact:
Deutsche ErdWärme GmbH & Co KG Herbert.Pohl@Deutsche-ErdWaerme.de
Greenstone Equity Partners
+971 4 382 7600
Omar Al-Gharabally, President
+971 4 332 3308
Lina Ibrahim, Account Manager
© Press Release 2015