Introduction to the Danish Climate Investment Fund Medlemsmøde, DBDH, 19. november 2015, Køge Investment Director, Otto Vinther Christensen

Transcription

1 Introduction to the Danish Climate Investment Fund Medlemsmøde, DBDH, 19. november 2015, Køge Investment Director, Otto Vinther Christensen

2 WHAT IS IFU? Independent government-owned fund, operating on commercial terms Provides risk capital and advice for projects having a Danish interest 150 investment countries Total contracted investments of more than 800investments 11 bn DKK 118 invested in share capital and loans bn DKK PAGE 2

3 OFFICES AND INVESTMENT TEAMS COPENHAGEN EUROPE AND MENA NORTH ASIA BEIJING AGRIBUSINESS CLIMATE INVESTMENTS SUB-SAHARAN AFRICA CAIRO NEW DELHI SOUTH ASIA ACCRA BOGOTA NAIROBI SINGAPORE LATIN AMERICA JOHANNESBURG IFU, KIF, DAF AIF PAGE 3

4 IFU AS A FUND MANAGER DAF DANISH AGRIBUSINESS FUND PAGE 4

5 WHAT IS DCIF Investment with a Danish interest Provides risk capital for climate investments and climate-related projects 150 investment countries Public Private Partnership Operates on commercial terms investment period DKK 4 years 1.3bn in committed capital PAGE 5

6 INSTITUTIONAL INVESTORS Pædagogernes Pensionskasse (PBU) manages pensions for more than 110,000 kindergarten and nursery teachers. The annual pension payments total DKK 2.5bn, and the total capital is DKK 50bn. PensionDanmark manages collective agreement and company labour market pension funds for 12 unions and 37 employers associations with a total of 642,000 members. The company s capital is DKK 150bn. PKA manages pensions for five pension funds, primarily within the health sector. PKA has invested approx. DKK 13bn in climate-related projects, including commitments. PKA has 260,000 members and capital of DKK 200bn. Dansk Vækstkapital makes investments on commercial terms in small cap, mid cap and venture funds focusing on small and medium-sized enterprises. The fund was established in 2011 with a total capital of DKK 4.8bn. Aage V. Jensen Charity Foundation is an international fund, established in The fund supports a number of large and small projects, often in cooperation with international organisations or institutions. PAGE 6

7 TYPICAL INVESTMENTS DCIF Danish company Local bank Local investor Loan Equity Equity Wind park Loan/equity Development bank DFIs Technology supplier PAGE 7

8 DCIF PORTFOLIO DCIF PORTFOLIO: SIGNED/COMMITTED OCTOBER 2015 Project name Country Partner Activity DCIF investment Total investment Climate effect (tco2e 10 year effect) mdkk mdkk AVK Valvulas do Brasil Brazil AVK Production of valves ,000 DEIF China China DEIF Production of control systems ,000 DONG Energy Bio (China) China Inbicon/ DONG Service company N/A* Lake Turkana Kenya Vestas Wind farm , ,150,000 Nordic Power Partners DAC European Energy Development of wind/solar projects N/A* NPP Maldives Maldives NPP Solar farm ,400 Vicuña Chile Grupo Ecos/SMA PV Solar ,000 ESCO Asia Malaysia DEM Energy efficiency ,000 Pampa Elvira Solar SPA Chile Sunmark Thermal solar ,000 South Solar Invest A/S Chile VKR Holding Thermal solar ,065.0 N/A* Shining Sun Rays Solar India SMA Solar Technology PV Solar ,500 Total 11 projects , ,880,900 * Carbon savings will be estimated for each of the individual projects PAGE 8

9 CASE: LAKE TURKANA, KENYA KEY FACTS Project type Country Status Fund participation Expected total investment Wind farm Kenya Signed DKK 88m DKK 4.8bn With 310 MW, Lake Turkana is the largest wind farm in sub-saharan Africa 365 Vestas turbines are to be installed Purchase power agreement has been signed with the Kenyan state electricity company Exit strategy: trade sale after 5 years, alternatively the investors will be issued redeemable shares PAGE 9

10 CASE: SOUTHSOLAR INVEST P/S KEY FACTS Project type Country Status Fund participation Expected total investment Thermal Solar Chile Signed DKK 94m DKK 1.1bn SouthSolar Invest P/S is a joint investment company with VKR Holding A/S. SouthSolar Invest P/S will invest in thermal solar plants with private PPA s in Latin America together with the local partner Energia Llaima. Targeted customers are mine companies. The first projects will be located in Northern Chile. The plan is to establish a solar thermal plant for electrolyte process, replacing the current diesel boilers PAGE 10

11 CASE: DEIF ELECTRICAL (SHANGHAI) CO. LTD, CHINA KEY FACTS Project type Country Status Fund participation Expected total investment Production of control systems China Signed DKK 53m DKK 105m Establishment of manufacturing facility for control systems for wind turbines DEIF s customers count some of the largest local wind turbine manufacturers in China There are strong indications that the wind market in China has recovered, and the sector enjoys high political support from the Central Government. Setting up local manufacturing is essential for becoming a part of the Chinese RE expansion. PAGE 11

12 IFU S EXECUTIVE BOARD Tommy Thomsen CEO Torben Huss Executive Vice President IFU S CLIMATE TEAM Jacob Klingemann Vice President, DCIF Natalia Svejgaard Investment Director Peer Munkholt Investment Director Otto Vinther Christensen Investment Director Bettina Vester Investment Manager Carole Welton Kaagaard Senior Sustainability Manager PAGE 12