Mitigating risk and providing clarity for
Asset owners are constantly challenged with optimizing the value of their assets and infrastructure. This is especially the case when attempting to quantify and control the risk and cost of transition and environmental closure liabilities in order to maximize an asset’s remaining operational value.
We develop independent and novel approaches that can inform an owner’s perspective on the future life-course of an asset. Our approach involves time-tested analytical methods that consider historical performance, the regulatory framework, and our client’s strategic objectives. Our work product helps focus owners on the critical issues and likely scenarios, enabling decisions to be made with greater confidence and certainty.
The transition from existing generation to new reduced-carbon technologies – along with developing closure strategies to minimize cost and risk – requires careful, meticulous, and strategic planning.
Our in-depth analysis includes proprietary modeling to present options identifying the benefits and risks of certain approaches. The results are viable transition strategies that enhance enterprise value, support ESG goals and minimize costs and risks. Working in concert with consultants and contractors already in place streamlines efforts and keeps costs controlled.
Establishing and quantifying ESG goals and metrics to measure success requires careful thought and an absolute commitment to the outcome. It is critical to understand what is being measured, how it is measured and the risks that the metric may not be achieved.
The rise of the importance of ESG commitments requires that every impact a business process has on the environment, worker health and safety, the community and furtherance of diversity in the workforce must be evaluated, with negative impacts avoided or mitigated and positive impacts measured and sustained over time. These metrics are a reflection of the strength and durability of the enterprise and naturally foretell financial success.
Our services for successful ESG strategies include a complete evaluation of the impacts of new and existing business processes related to energy generation and infrastructure repurposing, including:
- Operational and technical processes to reduce CO2 emissions
- Repowering and renewable generation transitions
- Workforce transition and stewardship
- Environmental closure and post-closure care
- Infrastructure and generation financing strategies
- Community, NGO and regulatory engagement
- Investor relations input and support
- Strategic planning support
All aspects of the transition strategy, including the wind-down of existing plant operations, procurement, construction management, environmental closure, and more, require knowledge, experience and expertise. Engaging us to manage the transition allows our clients to focus on the future.
We are specialists who have managed diverse fossil fuel fleets (coal, oil and gas) and overseen plant transitions and environmental closures as both owners and contractors.
Our services include oversight, procurement, construction management, remediation and long-term operations, maintenance and monitoring activities. We also have the critical relationships and experience to handle sensitive regulatory and NGO negotiations and compliance activities.
Decarbonization & Repurposing
We assist owners and investors in determining the “highest and best use” alternative for existing power infrastructure assets by analyzing factors such as current and future reliability impact on local grid operations, interconnection rights, renewable generation/storage potential, proximity to natural gas pipelines, and potential alternative-use options depending on access to transportation infrastructure and/or urban population centers.
In some cases, when renewable power technologies are an appropriate and financially attractive option, we work with renewable power engineers, contractors and developers, to design, finance and implement the project. In other cases, retaining or modifying the existing capacity and infrastructure may be necessary to preserve grid reliability as renewable energy development continues to expand.
While some properties may require isolation due to long-term environmental issues, other situations may allow for transfer of the property to governmental authorities or NGOs for beneficial reuse as the best option. Our direct experience with multiple outcomes helps us identify which solution makes the most sense, and we can guide you there with confidence.
Infrastructure investors looking to acquire legacy grid infrastructure, including environmentally impaired sites and financially distressed properties, can benefit from our transactional experience and subject-matter expertise. We identify and quantify legacy liabilities associated with potential investment opportunities, design transparent deal structures to segregate legacy liabilities from acquired assets, and provide due diligence support to facilitate restructuring of existing investments to accelerate financial exits.
Our team works with leading investment groups, law firms, and major engineering and market consultants on a wide range of transactions. Asset owners and infrastructure investors can benefit from our independent advice and our extensive transaction expertise.
Maximizing the residual value of an owner’s asset is complex and a non-core business function. We know how to acquire impaired assets and assume responsibility for all, or a portion, of a client’s portfolio. Most importantly, we know how to properly structure the transaction to address and isolate long-term environmental liability risks. Our experience, skills and access to investment capital allows owners to exit early and capture immediate ESG benefits, freeing them to focus solely on the future.