Gerald Edelman grows its green credentials

Gerald Edelman’s Marine Finance Division (part of GE Asset Finance & Leasing Ltd) has just completed a number of vessel financings in the ‘Green Energy’ Sector.

As the UK moves towards lower carbon fuel emissions there has been a huge increase in Offshore Wind installations around the UK.

“We believe that we are the largest provider of finance for work boats and crew transfer vessels in the UK with over 70 completions in the past five years.” states John Lutterloch – Managing Director of GE Asset Finance & Leasing. “Our clients tender for contracts to maintain and service new and existing offshore installations and look to acquire the latest marine technology. New vessels cost between £1 and £5 million and are manufactured to the high specifications necessary to cope with the varying sea conditions.

GE Marine has recently completed the financing of five new vessels for High Speed Transfers Ltd. HST is a leading operator in this sector with headquarters in Swansea and they currently operate five fast crew supplier 2710 vessels providing solutions to industries throughout Europe, from the Oil & Gas to the construction and operation of offshore wind parks.

The financing of HST Ella was completed in September and is the first new build CTV to be fuelled by HVO30. Compared to standard marine gas oil, HVO30 is predicted to result in around 18% reduction in equivalent CO2 emissions. The renewable fuel is created from 100% waste vegetable oils and holds a proof of sustainability certificate from the International Sustainability & Carbon Certification (ISCC) system.

The UK has become the world leader in offshore wind, with more capacity installed than any other country. It is estimated that over 7.5 million UK homes a year are powered by offshore wind and that by 2030, the UK will be getting about a third of its electricity from this source.

Gerald Edelman has been helping a number of UK companies to raise finance for new green energy initiatives. These include ‘pyrolysis’ of food waste, the conversion of waste tyres to energy, and providing facilities for building the largest waste to energy project in Europe being a 102-Megawatt development in Lincolnshire UK.

In addition, our team is financing the construction of a 45 Megawatt Bio Mass Plant in Alberta as well as a Green biofuel plant converting wood waste to a Gen 2 Biofuel which acts as a direct drop in replacement for coal in power generation. The group is also working on arranging funding for a Plastic recycling plant, a polysilicon plant and several smaller waste management and waste to energy projects in the UK.

Richard Kleiner – CEO of Gerald Edelman stated “We now find ourselves in a position where taking action as an individual, business and society as a whole for the sake of the climate is no longer an option, but an obligation. At Gerald Edelman, we are continuously looking for new ways that can positively impact our planet, a notion from which the Gerald Edelman Sustainability Committee was born. We also believe that our mission to change the way we think about climate action should not stop internally, which is why we make a conscious effort to work with clients such as HST that are actively engaging in the Green Energy sector, as well as further exploring other green projects. ”.

David Peters – Head of Structured Finance at GE Asset Finance confirms: “The UK is this month hosting the COP26 climate change conference and it is a time when the world must take serious action to address the problem of climate change and the impact, we have on it by the continued release of carbon and other greenhouse gases for both current and future generations”.

The UK, it is true to say, is leading the charge with offshore wind and is supportive, at least in theory, of a green economy and is no longer burning coal (one of the worst fossil fuels for carbon and GHG release) yet its overall energy policy is at best confused and still heavily reliant on imported gas.

The demand for new and innovative green technologies to address the various issues we face including energy supply, fuel supply and waste management is a reflection on how important both industry and government are taking the challenge. This has led to a host of new projects and technologies being brought to market seeking financing.

The team here at GE is well versed in the sector and is working closely with both debt and equity providers to assist in funding this new wave of innovation and development. The opportunity for substantial returns at low risk whilst addressing simultaneously the environmental challenge is leading to new investors, bankers and financial institutions entering the market. This has been and will continue to be a growth sector.