We are energy industry and environmental experts helping asset owners and investors tackle the challenges driven by the decarbonization of our power infrastructure.
Working in close partnership with our clients, we develop and implement strategies that transition existing power plants, impaired properties and grid infrastructure to new energy technologies and other repurposing solutions that achieve measurable carbon reduction goals, while maintaining grid resiliency.
Design and implement strategies that transition power and grid infrastructure assets to achieve lasting carbon emission reductions and sustainable Environmental, Social, and Governance outcomes for asset owners and investors.
Our goal is to help our clients transition from carbon-based fuels by helping them plan and implement an orderly repurposing of their power plants and infrastructure.
Environmental, Social and Governance
Responsibility is no longer limited to the bottom-line. How financial results are achieved and the impacts on the community and the environment are now critical benchmarks of performance.
Repurposing power plants is highly disruptive to the workforce, affecting the local community with consequential human and economic impacts.
Asset owners must consider all creative redevelopment solutions to optimize the remaining value of their assets and unlock potentially hidden long-term value.
The closure and long-term management of the plant site and legacy waste impoundments and landfills is a complex and financially significant undertaking, often underfunded and typically not within the expertise of many power plant owners.
The costs to transition power infrastructure assets are substantial, which could result in near-term rate increases for an owner’s regulated or commercial customer base.
Increased dependency on renewable generation with the reduction of baseload fossil fuel plants may lead to grid instability during periods of high demand.
Locational value of assets may not be apparent due to long term environmental liabilies and lack of clear transition strategy.
“Every challenge is unique. Our approach is consistent.”
The Market Is Here and Now
The transition from carbon-based fuels to renewable and lower carbon sources of power generation has significantly accelerated repowering and repurposing opportunities. This trend will only accelerate in the near future.
Resiliency is Key to Success
Generation of sustainable energy also dovetails with society’s long-term preference for cleaner, less costly, and dependable sources. Resiliency of the existing power infrastructure is now the key component of that reliability formula.
Redevelopment Options Drive Value
Power plant infrastructure has potential for redevelopment or beneficial reuse due to the proximity of major transmission systems, natural gas pipelines, and transportation infrastructure such as waterways and rail. New generation, storage, and capacity resources are crucial to meet growing demands in urban centers.
Transition Creates Opportunity
Achieving tangible economic results and measurable ESG objectives are key to a successful transition plan. Quantifying and isolating the legacy liabilities and risks and developing the optimal reuse strategy enables the sourcing of required capital.
Attaining ESG Goals Will Be Rewarded
Meaningful and quantifiable ESG goals are essential in today’s global economy as investors, customers and the public demand socially responsible and environmentally sensitive business strategies. Early action yields immediate significant benefits. In addition, sustainable practices are a leading indicator of good financial performance. Establishing and achieving measurable ESG goals will enhance value creation inherent in decarbonizing the energy sector.
We provide a unique and independent analysis of each situation. The depth, breadth and experience of our team provides our clients with a broad spectrum of analysis addressing the risks and rewards of transition, thus enabling executive level decisions that are well-founded, maximizing value and minimizing uncertainty.
Based on our real world experience, we can quickly and efficiently assess the market, operational and environmental opportunities and risks associated with transition options. Working closely with our clients, we identify multiple options and quantify the financial rewards and risks of each option to inform decision-making.
Once a decision is made on the transition strategy, we develop a detailed, step-by-step plan for implementing the strategy, identifying resources needed, and the financial impacts of each step. We identify off-ramps if circumstances change or opportunities arise. Our ability to put customized transition strategies in place provides both certainty and assurance for owners and investors.
Our team can manage the complex transition process associated with repurposing power generation and its infrastructure, including implementing environmental closures and establishing the financial and operational entities necessary to manage the long-term operations, maintenance and monitoring requirements for regulatory compliance.
Continued operation of power generation is often necessary to meet demand, maintain resiliency and to provide funding for the transition strategy. We have the management experience and operational expertise to optimize plant operations, develop and implement key staff retention strategies, monetize inventory and equipment, and utilize existing personnel for environmental pre-closure activities.
Our management of the end-of-life transition allows owners and investors to focus on continued operations. We have direct applicable experience with facility retirements, including “cold and dark” mothballing and decommissioning and demolition, and closure and post-closure management of regulated units to satisfy environmental compliance obligations.
We identify, and if needed, implement, future renewable generation, economic redevelopment or beneficial reuse options. Our approach leverages all aspects of the physical location and infrastructure, including substations, natural gas pipelines, highway access, adjacent railways, and waterways to maximize the latent value of the asset.
We have the capacity to purchase an asset (or portfolio of assets) when that option is in the best interest of a client. This approach generally yields immediate financial and ESG benefits. In the role of new owner, we provide the capital necessary to complete the transaction and apply our skills to plan and manage the technical, regulatory, legal and ESG complexities of closure, repowering or repurposing requirements. This approach includes the design and implementation of financial assurance for any long-term liabilities to ensure our client achieves a “clean exit.”