Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Why a Romanian-based Clean Energy Company Should be on Your Radar

Jocelyn Aspa Jocelyn Aspa, The Market Herald
5 Comments| October 13, 2021

{{labelSign}}  Favorites
{{errorMessage}}

No matter which way you look at it, clean energy is the way of the future as the move to transition to renewable sources such as wind, solar, geothermal, hydropower and ocean resources becomes more prevalent in our daily lives.

In line with this, the renewable energy sector was up 45 percent in 2020 — the industry’s largest annual growth rate of increase since 1999. Moving ahead, it is projected that the global renewable energy market will reach US$1.97 trillion by 2030, up from $881.7 billion in 2020, representing a compound annual growth rate of 8.41 percent between now and then.

With the continued shift towards more viable energy sources, interest in green energy companies is also on the rise. For example, take Jade Power Trust (TSXV:JPWR.UN, OTC:TNSTF, Forum), a Toronto-based clean energy company with a portfolio consisting of wind, solar and hydropower generation assets. Founded in 2014, the company’s mission is to provide power from energy sources that “respect the environment and have a low greenhouse gas emissions footprint through a commercially sustainable business model.”

At the company’s core, its strategy has been growing through acquisitions, which has enabled Jade Power to increase its production capacity and revenue base by acquiring mid-sized assets through direct negotiation. The company began in 2014 with only 5 MW of hydro generation, and by the following year, it expanded into solar through the acquisition of two solar parks with an aggregate installed capacity of roughly 17MW.

By 2016, Jade Power Trust expanded again into the wind sector through the acquisition of a 17MW park, and then again in 2017 with a 45MW wind park.

In short, over the course of only a few years, Jade Power Trust has undergone tremendous growth, having increased its generating capacity from 5MW to 81MW in just 3 years. At present, the company has an aggregate energy capacity of 81 MW and is in a strong position to continue growing its operational footprint this year and beyond — making it an attractive investment opportunity.

With that said, Jade Power Trust also presents itself as a unique opportunity for investors to be an exclusively clean energy-focused operating company that targets only emerging markets. Because of this Jade Power believes it can provide, over time, higher returns for investors with a similar strategy applied to developed markets.

The focus in Romania

Broadly, countries in Eastern Europe have the highest electricity prices in the continent, driven mostly by substantial coal-fired generation and transmission limitations. With that being said, carbon prices are expected to increase as the continent works to aggressively reduce emissions: notably by 55 percent by 2030 and by 100 percent by 2050 compared to 1990 levels.

When the Canadian-based company first began its operations, it initially targeted Romania for three key reasons. In an interview with Stockhouse Editorial, the company said the first reason was due to the fact that the country was a rare emerging economy with multiple GW of renewables in operation or development in the three key renewable categories: hydro, wind and solar.

“We are seeking to leverage our experience in Romania and strong balance-sheet to find highly accretive clean energy development opportunities in other emerging renewables markets,” the company told Stockhouse Editorial. When asked about the company’s intention to expand into other markets, the company said it has “an opportunistic mindset” and isn’t closed off to expanding to additional geographies.

That being said, the company explained it wants to manage the risk of its existing portfolio and find opportunities that are “highly accretive” to its shareholders.

“We are focused on opportunities in more developed emerging markets, and also smaller markets, where we are seeing opportunities that are potentially material to us but are too small for many of the larger players in the renewable sector to consider,” the company explained.

What’s next for the company

As we move into the rest of 2021 and beyond, the company will be looking to expand certain existing operations, make use of existing infrastructure and expertise. The company said it will be looking for new developments in Romania where it can leverage its in-country cash flows, reputation and operating experience.

With the company’s feet planted solidly in the country, Jade Power Trust will also be looking to leverage its experience and strong-balance sheet in order to find highly accretive clean energy opportunities in other emerging renewable markets.

“We believe there are numerous opportunities for us to exploit opportunities that may be too small for pension funds or large energy companies but are potentially highly accretive and relative to us at our current stage of development,” the company explained.

When asked if the company has plans to expand beyond Romania as part of its growth strategy, Jade Power explained it has an opportunistic mindset and isn’t restricting its future geographies but explained that it is important for the company to manage the risk of its overall portfolio and find opportunities that are highly accretive to its shareholders.

“With this in mind, we are focused on opportunities in more developed emerging markets, and also smaller markets, where we are seeing opportunities that are potentially material to us but are too small for many of the larger players in the renewable sector to consider,” the company said.

The management team

The company’s team and board of directors is made up of individuals from relevant and complementary backgrounds that provide experience in the financial, capital and energy markets.

J, Colter Eadie, CEO and Director

J. Colter Eadie is the company’s CEO and is based in Bucharest, Romania. He has spent the last several years focused in the renewable energy sector in Romania and Eastern Europe.

In addition to his work in the renewable energy sector, Eadie has a background in real estate development including acquiring, permitting and constructing. He has also worked at a senior level in business advisory roles in Europe and North America.

Betty Soares, CFO

Betty Soares is CFO of Jade Power Trust and has over 15 years experience in finance leadership that is backed by operational and technological expertise, M&A experience, transformational leadership and change management.

Soares also has experience in restructuring and organizational leadership and onboarding new technologies. Additionally, Soares spent nearly 13 years at Yamana Gold (TSX:YRI, NYSE:AUY) as vice president of corporate control and chief accounting officer as well as vice president of performance management.

She is also a member of FEI Canada serving the Committee on Corporate Reporting, Women’s Executive Network (WXN) and member of the Board of Directors of North York Women’s Shelter and serves on its Finance Committee.

Soares has a Bachelor of Administration (Honours) from Wilfrid Laurier University and is a Global Executive MBA candidate from the Rotman School of Management of the University of Toronto and is also a member of the Ontario Professional Chartered Accountants.

Ravi Sood, Executive Chairman of the Board of Directors

Ravi Sood is a financier and founder of a range of businesses operating in emerging markets, such as Buchanan Renewables Ltd., Feronia Inc. and Galane Gold Ltd.

Sood also serves as a director of Galane Gold, BioMind Corp., SPARQ Systems and Eve & Co. Cannabis. He was also the co-founder and CEO of Navina Asset Management Inc. a global asset management firm located in Toronto. Here, Sood led the investment activities of Navina and its predecessor company, Lawrence Asset Management, from its founding in 2001 until he sold it in 2010.

Sood received a Bachelor of Mathematics from the University of Waterloo where he was also a Descartes Fellow and received a range of national awards.

The investment opportunity

As of October 6, Jade Power Trust has a share price of C$2.38 and a market capitalization of $55.03 million. Currently, there are 23.12 million shares outstanding.

The company has also repaid a majority of the debt it accumulated during its acquisition phase and finds itself in a position where it is profitable, under-levered and able to seek out and exploit growth opportunities without having to dilute its shareholders. Case in point, the company recently announced a share buyback which it is using to repurchase shares for cancellation.

“We continue to focus on ways to improve value to our shareholders and seek accretive ways to leverage our proven ability to execute in markets, both in our existing and targeting markets,” Eadie said.

In other words, Jade Power Trust not only has the capital to go the distance but its projects and intentions to continue growing in Romania — and beyond — make it an attractive and sound long-term investment opportunity.

For more information, please visit jadepower.com.

FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.



{{labelSign}}  Favorites
{{errorMessage}}

Comments

Could you reread? There is a lot of repetitions ! TY
(18)
October 14, 2021

Leave a Comment

You must be logged in to be able to post a comment.

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today