RE:Offtake and financing by Super Major Non-recourse financing for projects like this can be 80% of total capex. The remaining 20% project equity can be provided by a JV partner for a 50% share of project cash flow.
| | Alta refinery | Alta refinery | US refinery |
| Bpd | 1,540 | 2800 | 5600 |
| Capex | 115 | 209.1 | 418.2 |
| 20% equity | 23.0 | 41.8 | 83.6 |
AndreasG wrote: Multiple possible financing scenarios and possible financing partners for GIII. Banks, Asset Managers , Private Equity Funds, Private Debt Funds, Government backed institutions like EDC or even First Nations Groups.
One that has not got any attention so far are the Venture Capital subsidiaries of those Oil Super Majors. Those SM's have been doing due diligence for months , have been negotiating for months. So they should know very well how the economics play out , both for them as for GIII.
So why would you not use this knowledge and participate in the financing of a trapline of facilities.
BP has established a venture capital arm called BP Ventures in 2006 and has invested 300M $ in disruptive technologies since then.
Shell Technology Ventures was incorporated in 1998 and has been investing heavily in clean tech.
Combining an offtake by the oil SM with an equity financing stake of 10 to 20% by the Venture arm of that same SM , would create and even more compelling investment case for other financing partners to cover the remaining portion based on a debt structure.