Author: iiicorpblog

IIICorp to sponsor the 50th FELABAN Annual Assembly in Buenos Aires

felaban IIICorp is a sponsor of the 50th FELABAN Annual Assembly, taking place in Buenos Aires November 5-8. FELABAN is the premier international LATAM banking event, and we are very much looking forward to introducing our product to the LATAM banking community. If you or your colleagues are attending the conference, please stop by Table 14 in the exhibitor hall to meet us and learn more.

Feel free to email Chris Salgado, our Head of Sales and Product Development for Trade Finance, at chris.salgado@iiicorp.com to arrange individual meetings or introductions. We See you in Argentina! show less

SES to supply gasifiers to Brazil’s Vamtec Vitoria in deal worth more than USD 100m

Synthesis Energy Systems, Inc. (SES) is slated to supply coal gasification technology to a USD 400m Vamtec Vitoria SA biodiesel production plant, according to Vamtec Vitoria Feasibility and Project Director Jean Levitre.

The deal is likely to be valued at more than USD 100m. SES CEO DeLome Fair yesterday that the company remains in “strong consideration” for a project in South America that could net it over USD 100m in revenue, likely in reference to the Vamtec Vitoria project. Pressed by analysts for more information about the deal, she declined to provide further comment.

Vamtec Vitoria recently received a nod from the municipal legislature in Candiota, Brazil to build a local USD 400m methanol gasification-based biodiesel production plant, according to local media reports. The facility will provide 750 tonnes/day of methanol to the local market and utilize SES technology to gasify low rank coal.

Vamtec Vitoria has signed a letter of intent to purchase a 70MW turbine from Mitsubishi Groupsubsidiary Mitsubishi Heavy Industries for the facility. The company is also planning to build a 4000 t/d coal gasification train, 1300 t/d oxygen plant, 1300 t/d argon plant and 200 t/d argon plant. It is preparing an environmental impact assessment now that should be completed within two to three months. Vamtec will meet with its undisclosed investment partner in December to review the capex and opex of the project and, if green lighted,seek an EPC contractor by 2H17.

Vamtec is looking for financing to support the construction of the project, according to local media. The company is attempting to raise 70% of the value of the facility via the Banco Nacional de Desenvolvimento Economico e Social (BNDES) and the remaining 30% via equity investors. Levitre said it is in talks with various investors now and declined to provide more information.

The Vamtec Vitoria plant will help reduce Brazil’s reliance on imported methanol, a key component of biodiesel. Each liter of biodiesel contains about 12% methanol and Brazil currently imports about 1.5m tonnes of the chemical compound annually. Brazil has ramped up its biodiesel production in recent years, a development that has contributed to a 675m-tonne reaction of greenhouse gas emissions.

Based in Houston, Texas, SES sells technology that can convert low grade coal, biomass and municipal solid waste into energy products for applications in the power generation, industrial fuels, chemicals, fertilizers and transportation fuels industries. The company reported revenues of USD 500,000 for the three months ended 30 June, down from USD 4.6m on the year. As of that same day it had USD 13.8m in cash and cash equivalents and USD 2.4m in working capital.

SES has built extensive ties to industry and government in China over the last several years. It is angling to use its base of operations in the country to faciliate a global expansion in the company years. For example, the company’s Chinese joint venture with Suzhou Thvow Technology Co Ltd, known as Suzhou Tianwo SES, is likely to be involved in supplying equipment to SES’ projects in South America, CEO DeLome Fair said earlier this year. Simon India Ltd, another SES partner based in India, is also likely to be involved, Fair said at the time.

SES declined to comment on this story.

 

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Opportunity of the Week: CSSC awards machine tool contract to European companies

CSSC Marine Power Co, a subsidiary of China State Shipbuilding Corporation (CSSC), has recently purchased a variety of production equipment via international tenders, said the tender agent. CSSC chose Fives Landis Ltd’s crankshaft grinder, IMT Intermato SpA’s CNC turn-mill center, Hexagon AB’s gantry coordinate measuring machines, and horizontal machining center from Juaristi TS Comercial SL, said Huang Pianpian from Beijing Rui Chi Fei Si Tender Co, the appointed agent representing CSSC in this case.

Those orders will be delivered within an eight to 18 months period at various Chinese ports such as Nanjing and Anqing.

CSSC is strengthening its position in China’s engine market even with the current low market demand. In July, it acquired a 30% stake in two-stroke JV Winterthur Gas & Diesel (WinGD) from its partner Wartsila Corporation; following the transaction, CSSC owns 100% of WinGD. Market research shows that in China’s medium-speed diesel engine market, Weichai Heavy Machinery and CSSC Marine Power take up a 58.9% market share. In October 2015, CSSC Marine Power renewed the contract with MAN Diesel & Turbo for another 10 years of production of four-stroke medium speed engines. In May 2016, the company’s 6S60ME low-speed diesel engine started operation. The latest designed model is the largest diesel engine constructed by CSSC Marine Power, which weighs approximately 390 tons.

 

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Longi Silicon Materials to invest USD 240m in Malaysian fabrication plant; project finance opportunities available

 

Longi (HK) Trading Limited (隆基香港贸易有限公司) plans to invest USD 240m (CNY 1.6bn) in the construction of a fabrication plant called Longi (Kuching) Sdn Bhd(古晋隆基) in Malaysia, according to Mr. Wang Hao (王皓), who is the Securities Affairs Representative at the subsidiary of Xi’an Longi Silicon Materials Corp.(西安隆基硅材料股份有限公司).

The facility, which is to be located at the Sama Jaya Free Industrial Zone in Kuching City, Sarawak State, will comprise production capacities of 1 GW of wafers, 500MW of monocrystalline silicon solar cells, 500MW of PV modules and 300MW of ingots.

The project, which is scheduled to become operational in the first quarter of 2017, is expected to generate annual revenues of USD 318m (CNY 2,12bn) from which it will yield a net profit of USD 13.4m (CNY 89.44m).

“The total project investment (TPI) is USD 240m and Longi Kuching is the main investor,” Wang told this news serice. “The source of funding comes from the parent company Longi Silicon Material as well as bank loans.”

Longi Silicon Materials has applied for debt finance from Industrial Bank Co Ltd, Xi’an branch (兴业银行西安分行) and the Industrial and Commercial Bank of China‘s  Yunfu branch (中国工商银行云浮分行). Banks in mainland China, Hong Kong and Malaysia will also be able to get involved depending on how favorable the conditions are, Wang added.

Besides the project in Malaysia, Longi Silicon Materials has invested in setting up an integrated solar plant in an Indonesian industrial zone this year, which is expected to be completed and begin operations by the end of 2016. Considering the production costs and expected profits, Southeast Asia is viewed as a deserving target for future investments, Wang observed.

Longi Silicon Materials achieved operating income of USD 968m (CNY 6.424 bn) in the first half of 2016, which represented a 282.15% increase year-over-year. In terms of profits, the company posted a net increase of 634.2% in the space of a year, reaching H1 profits of USD 130m (CNY 866m), according to the company’s latest financial report.

Opportunity of the Week: GCL-Poly Energy to build a 1200T/D waste incineration plant with USD 45m in Henan

GCL-Poly Energy Holdings Limited, the subsidiary of Golden Concord Holdings Limited (GCL Group), will build a new waste-to-energy (WTE) plant in Yongcheng city in Henan province. An estimated total project investment (TPI) of USD 45m (CNY 300m) will be required to build the 1200 tons per day (T/D) WTE plant, according to Dai, the project contact person.

Dai explained that the core employed equipment consists of three 400T/D mechanical grates, 12MW and 18MW condensing steam turbine generators as well as 12MW and 18MW electricity generators. Heat recovery steam generators (HRSG), automated control devices, and crushers will also be needed. Apart from above equipment, the WTE station will also entail environmental protection measures, including fly ash stabilization processing, flue gas treatment, and leachate treatment. He said equipment procurement will be after the environmental impact assessment (EIA), maybe later this year.

Dai said that project financing is from bank loans and company assets. Credit is being granted by five major banks in China, including Bank of China Limited, Agricultural Bank of China (ABC) (中国农业银行), China Construction Bank Corporation (中国建设银行股份有限公司), Industrial and Commercial Bank of China Limited (ICBC) (中国工商银行), and Bank of Communications Ltd (BOCOM Securities). However, he did not provide the loan amount each bank would provide.

Jiangsu Academy of Environmental Industry and Technology Corporation Ltd is undertaking the EIA. Now they are working on the first draft of the EIA report after receiving some public suggestions.

 

 

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Eight Rivers Energy fine tuning PPA for 50MW solar plant before issuing RFP for EPC and locking in financing

Eight Rivers Energy Company Limited (EREC), a solar power developer, is fine tuning its power purchase agreement (PPA) with Jamaica Public Service Limited (JPS) before issuing a request for proposals (RFP) from EPC firms and locking in the debt component of its project finance, partner and Managing Director Angella Rainford said.

A JV held by Rainford’s UK-based Rekamniar Frontier Ventures and Paris-based Neoen SAS, EREC was awarded a 37MW renewable energy tender issued by Jamaican regulator, Office of Utilities Regulation (OUR) in May 2016 at a feed-in rate of USD 0.0854 per kWh, the lowest to date in the country. The cost of capital and the developer’s ability to lever the project, along with a significant drop in equipment costs, allowed EREC to bid at such a competitive rate, Rainford said, noting the USD 50m project would have cost at least twice as much to build just a few years earlier.

EREC is building to a gross capacity of 49.5MW, at a cost of about USD 1m per MW, Rainford said, noting the efficiency of the modules, the technology and yield had improved tremendously since the partners began exploring the project in 2012 when OUR originally announced it would tender up to 115MW of renewable energy. The capacity EREC was awarded was the last tranche, following the award of 78MW to solar and wind developers WRB Energy and Blue Mountain Renewables (BMR) respectively.

EREC is finalizing the details of its PPA with Jamaica’s power distribution monopoly JPS by November, before launching an RFP for the EPC work by late 3Q16 or early 4Q16 and closing financing by mid-2017, Rainford said. Eight Rivers will invite pre-qualified EPC bidders to respond and then evaluate each based on a list of criteria, including balance sheet, warranties, and project references, she noted. Neoen’s engineer will help draft and issue the RFP, Rainford said. She noted Neoen has an EPC arm, but that the selection process would be carried out competitively. Spain-based turnkey solar project developer Sofos Energy, which has participated in several other photovoltaic (PV) projects in Jamaica and around the Caribbean, will likely be among the EPC firms invited to bid, she said.

The project developers are seeking 75% to 80% debt finance and are in discussions with international, regional, and multilateral lenders, including the Inter-American Development Bank (IDB) and the International Finance Corporation (IFC). The equity partners have a long-term hold strategy with no defined timeline for an exit, Rainford said.

Eight Rivers partners have yet to determine whether they will allow the EPC to source the panels and inverters required for the 50MW solar farm, or whether the equipment will be sourced directly by the equity partners. More than likely, the developers will allow the EPC to take responsibility for sourcing the equipment and ensuring its integrity, Rainford said. “My view is that we’ll have a single point; single point risk, single point accountability,” she said.

The construction period is projected to last nine to 10 months, but the developer is budgeting a year conservatively, Rainford said, noting the project is expected to be online by the end of 2018.

Neoen is a Paris-based renewable energy company founded in 2008 with 750MW of assets, between those in operation and under construction. Neoen ia backed by Paris-based family office Omnes Capital and sovereign wealth fund Bpifrance, the latter acquiring a 15.4% stake in 2014.

 

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AVR Vidyuth looking for foreign investors for developing 225MW gas-based power plant

AVR Vidyuth Private Limited is planning to start discussions with foreign investors to raise funds for developing a 225MW gas-based power plant at Adavipolam in Yanam district of Puducherry, said Vishnu Vardhan Rao, MD, AVR Vidyut. The company is also looking for a foreign EPC contractor to invest in the project, he added.

Rao said that the proposed project has been approved by the government of Puducherry. Land required for the project has also been procured. Once a foreign investor and an EPC contractor is finalized, AVR Vidyuth will approach the government of Puducherry for allocation of gas required for the project, he added.

The total cost of developing 1MW of gas-based power will be about USD 750,000 (Rs. 5 crore), said Ashok Kumar, Administrator, AVR Vidyuth. Based on this metric, the total project investment (TPI) of the 225MW power unit will be around USD 168.7m (Rs. 1125.8 crore).

Project equipment would typically include air compressors, gas turbines, steam generators, combustion chambers, condensers, fuel burners, jet pipes and propelling nozzles, fuel valves, and synchronous generators, among other equipment.

 

 

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